Retirement Interest Only Mortgages (RIOs) / Later Life Lending
Retirement Interest Only Mortgages are an alternative to equity release schemes.
These mortgages are arranged on an interest only basis often with no set end date and are intended to offer older borrowers; those approaching or in retirement, the opportunity to:
- Release or protect equity and leave inheritance for loved ones
- Retirement planning; facilitate/fund a lifestyle choice (i.e. holiday/property improvement)
- Are existing interest only borrowers who wish to and can maintain their monthly payments but not able to repay their capital balance which can facilitate not needing to sell and downsize
How it works
With an RIOs mortgage, the borrower is required to make monthly interest payments for the full life /mortgage term so it is necessary for the applicants to meet the lender’s affordability requirements – and demonstrate that they can afford current and ongoing monthly mortgage payments.
Lenders will have criteria to satisfy in respect of minimum age and affordability. This will be taken into account as part of our research into your individual circumstances and requirements. If there is an end date on the mortgage it will be necessary to consider the repayment vehicle and this will need to be compatible to the particular lenders criteria.
Later Life Lending
There are also a variety of mortgage products designed for later life clients but these are not structured exactly like the RIOs product. They have an end date usually but can be arranged interest only.
Cherry Tree Financial can provide tailored solutions for clients wishing to benefit from Retirement Interest only mortgages.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages such as commercial BTLs are not regulated by the FCA.
