As the face of retirement evolves, so must the range of financial products available to clients entering later life. You can help more clients realise their retirement ambitions through our enhanced retirement interest only mortgages (RIO).

We’ve developed our RIO mortgages to meet the needs of those clients looking for more choice and flexibility. The latest search trends from Legal & General Mortgage Club show that 1 in 4 adults over 55 are looking to borrow more than current market standards will allow.

With living costs rising, responsible lending is at the heart of our approach. However, affordability criteria automatically restricts prospective homeowners or re-mortgagers to borrowing 4.5 times their annual income. For clients who can afford to borrow more comfortably, we’re now able to lend up to 8.5 times their annual income.

Feel confident in our tailored approach

We individually underwrite each case and maintain a robust affordability assessment to ensure your clients can meet monthly payments before and during retirement. Interest rates are fixed for life, which can be comforting in later life when people may struggle to react to an increase in outgoings.

Solve your clients’ specific needs

A RIO mortgage is a loan secured against the client’s home. It’s designed for clients aged 55 and over, who are living in, or buying their own home, and want to borrow a minimum of £10,000 or a maximum of 60% of their LTV.

  • Divorce – With later life divorce on the up, 1 in 4 people see their income decrease and can struggle getting back onto the property ladder following the division of assets. Sometimes clients need to borrow more to enable a fresh start or to achieve a retirement that meets their lifestyle.
  • Late inheritance – The average age of inheritance is now 61 years old. For clients in receipt of a windfall in later life, a RIO mortgage could enable them to buy their ideal home.
  • Interest-only mortgage repayment – For clients with an outstanding interest-only mortgage, a RIO could help them pay off the remaining balance or make home improvements.

A RIO mortgage could help these clients secure their ideal home by boosting their borrowing capacity. Interest payments must be paid each month. Your client still has the flexibility to move home in the future if the new property meets our lending criteria. As a last resort, their home may be repossessed if they don’t keep up with the monthly payments.

Help more of your clients with our support

We’ll support you as you navigate more complex cases. Whether you want access to our inhouse team of experts, use our online sourcing tools, or would rather refer the case to us.

Visit for more information on Legal & General’s Retirement Interest Only Mortgage today.

 

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