A RIO mortgage is designed for older borrowers and works similarly to an interest-only mortgage. You make monthly interest payments, with the original loan amount usually repaid when the property is eventually sold.
With a RIO mortgage, you are normally required to make monthly payments, whereas many equity release products allow interest to roll up over time. A RIO mortgage can therefore be a useful option for people with a sustainable retirement income who want to keep control of the balance owed.
RIO mortgages may be useful for:
Lenders may consider pension income, investment income, rental income, and other retirement income sources, subject to criteria.
Many lenders now have flexible age criteria for later life lending, although this varies between lenders and individual circumstances.
We can discuss the later life mortgage options available and help you understand whether a Retirement Interest Only mortgage could be suitable for your circumstances. Equity Release is a specialist area of advice. We work alongside trusted later life specialists who are fully qualified to advise on equity release products.
Equity release is a way for homeowners aged 55 and over to access some of the money tied up in their property, without necessarily needing to sell their home or move out.
The most common form of equity release is a lifetime mortgage. This allows you to borrow money secured against your home, while still retaining ownership of the property.
Unlike a traditional mortgage, monthly repayments are often optional. Instead, the interest charged on the loan can be “rolled up”, meaning it is added to the balance over time. This means the amount owed can increase as interest is charged on both the original loan and the accumulated interest.
The loan, along with any interest built up, is usually repaid when the property is sold following death or moving into long-term long-term care.
Some modern lifetime mortgages also offer flexible features, such as:
The most common form of equity release is a lifetime mortgage. This allows you to borrow money secured against your home, while still retaining ownership of the property.
Unlike a traditional mortgage, monthly repayments are often optional. Instead, the interest charged on the loan can be “rolled up”, meaning it is added to the balance over time. This means the amount owed can increase as interest is charged on both the original loan and the accumulated interest.
The loan, along with any interest built up, is usually repaid when the property is sold following death or moving into long-term long-term care.
Some modern lifetime mortgages also offer flexible features, such as:
Equity release can be a useful solution for some homeowners, but it is important to understand the long-term impact. As interest may roll up over time, the total amount owed can increase significantly and may reduce the value of your estate.
It may also affect:
This is why specialist advice is essential before proceeding.
People use equity release for many different reasons, including:
Yes. With a lifetime mortgage, you remain the owner of your property.
No. Equity release is a specialist area of advice. We work alongside trusted later life lending specialists who are fully qualified to advise on equity release products and can introduce you where appropriate.
We’ll help you understand your options clearly so you can make confident decisions for yourself and your family.
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