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A Retirement Interest Only Mortgage is an interest only mortgage with no set end date

Retirement Interest Only Mortgages or RIO’s are designed to help borrowers who are looking for a lifestyle or retirement planning option, or may want to release equity, protect remaining equity and leave an inheritance for loved ones.

You may be an existing only customer unable to repay your current mortgage but can maintain their payments.

If we can help you please contact us on
0800 170 7472 or complete our enquiry form.

Lending criteria

		Maximum of 2 applicants, both of whom must use the property as their main residence.
		Minimum age at date of application is 55 years.
		Maximum age at date of application is 80 years.
		Maximum Loan to Value (LTV) 55%.
		For new RIO applications capital raising for property and non-property related purposes is allowed, subject to maximum LTV.
		No maximum term.
		Only allowed on Interest Only terms.
		Sale of property is the only allowable repayment vehicle with no minimum equity value.

For more information please contact us on 0800 170 7472 or complete our enquiry form.

Income assessment

Affordability will be assessed on the applicant’s ability to maintain mortgage payments for the life of the mortgage, using the lower of the following:

		Current income which can be evidenced.
		Projected income in retirement, including any transferrable pension benefits, which can be evidenced.
		For joint borrowers, affordability will be assessed on the lowest earner to ensure ability of a surviving borrower and/or last borrower residing in the property to maintain payments.
		Retirement age is defined as either the applicant's stated retirement age or 70 years, whichever is the earlier. When in retirement employed or self-employed income should not be used to assess affordability.

Please note:

The income used to assess affordability should be sustainable for the life of the mortgage. Acceptable income types include:

Pension income, including state and private pensions, annuities, and appropriate income drawdown plans and SIPPs.
Transferrable pension benefits

Income from sustainable investments
Sustainable income from rental properties

Okay, let’s do the sums

Prefer we do the calculations? Just call us on 0800 170 7472

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Frequently Asked Questions

What are the risks of Equity Release?

Our experts will advise you on the risks and benefits, but below is a summary.

Equity Release reduces the value of your estate and the amount that will go to the people named as beneficiaries in your will. Your estate is everything you own, including money, property, possessions and investments.
With a home reversion plan, the reversion company owns all or a part-share of your home.
Getting a lump sum or taking extra cash to supplement your income may reduce your entitlement to means-tested benefits, now or in the future.
If you get care at home funded fully or partially by the local council, they may start charging you or ask you to pay more.

Who can get Equity Release?

There are certain conditions you must meet before being able to take out Equity Release:

For a lifetime mortgage you (or both of you, if you’re borrowing jointly) need to be at least 55 years old.
You must own property in the UK, which must be your main residence. If you have a buy-to-let property you can release equity with a buy-to-let mortgage even if you have retired.
Your property must be in reasonable condition and over a certain value, and there may also be restrictions on the type of property accepted.
If you have a mortgage or secured loan on your property you may still qualify for Equity Release, but it will depend on the value of your home and the amount outstanding on the existing mortgage or loan. You'll have to pay off any outstanding mortgages or loans secured against your home at the same time as taking Equity Release.
Equity Release may not be suitable if you have dependants living with you. Any dependants should take separate legal advice. If they wish to remain living with you in the property, they may need to sign a waiver confirming that they understand they don’t have the right to reside there if you die or move into permanent residential care.

What happens if I pass away or go into residential care?

Your personal representatives will be asked to repay the mortgage.

They will have the opportunity to do this over a twelve-month period in order to gain the best value for the sale. They remain in control of your affairs for this period and will not be subject to interference from the lender.

If the lifetime mortgage is in joint names, the loan does not become payable until the remaining account holder dies or vacates the property.

How does it work? What does an Equity Release Specialist do?

Initially, our Specialists will provide you with research based on your current requirements and situation. This is without obligation on your part – that’s just how we do it.

If you find what we have sent of interest and wish to go forward, we will make a thorough assessment of your needs and recommend an appropriate lender and mortgage product for you. We will then approach that lender on your behalf, to gain a decision in principle and an indication of their willingness to lend.

We then manage your application through to completion, keeping you in the loop throughout.

What are your qualifications?

All Equity Release Marketplace advisers hold a Certificate in Regulated Equity Release (CeRER) enabling them to advise on the specialist area of Equity Release. All our Mortgage Advisers also hold a Certificate in Mortgage Advice and Practice (CeMAP).