Here’s What You Need to Know...
A Retirement Interest-Only (RIO) mortgage is designed for individuals aged 50 and over. Unlike traditional mortgages, RIO mortgages require you to pay only the interest each month, with no fixed repayment term.
There are benefits and drawbacks to consider, so let’s explore the essentials and what you’ll need to qualify:
What is the Eligibility Criteria?
To qualify for a Retirement Interest-Only (RIO) mortgage, you must:
• Pass lender affordability checks to show you can comfortably afford the interest-only repayments.
• Ensure the youngest applicant is at least 50 years old.
How Much Can I Borrow?
With a Retirement Interest-Only (RIO) mortgage, you can typically borrow up to 75% of your property’s value. The exact amount will depend on your individual circumstances and affordability.
Do I Have to Make Regular Repayments?
Yes, with a Retirement Interest-Only (RIO) mortgage, you’re required to make regular monthly interest payments.
When Do I Have to Repay the Full Loan Amount?
The capital is typically repaid when the property is sold, the homeowners pass away, or they move into long-term care. This ensures flexibility while allowing you to remain in your home.
Important Information
You should always think carefully before securing a loan against your property.
A lifetime mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits.
Clearing an existing mortgage with a lifetime mortgage may result in higher cost of borrowing.
We charge a fee for later life mortgage advice. The fee is up to £995.
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Want to Learn More?
Explore our Mortgages for Over 50s Guide—perfect for those approaching or enjoying retirement. It’s packed with answers to your questions and clear advice on the mortgage options available to you in later life.
Residential Mortgage
If you have a steady income to support your repayments, you could qualify for a standard residential mortgage.
You’ll have the flexibility to choose between two repayment options:
- Capital Repayment:
- Interest-Only Repayment
Lifetime Mortgage
A lifetime mortgage is a loan secured against your home, allowing you to access its value without the need for monthly repayments—unless you choose to make them.
It’s important to note that a lifetime mortgage will reduce the value of your estate and could impact your eligibility for means-tested benefits.
Getting a mortgage in later life can feel challenging, but it doesn’t have to be. We offer a range of tailored options for homeowners aged 50 and over, making it easier to access the equity in your home (or multiple properties) without needing to sell or downsize.
No, you don’t need to be retired, but you must meet the minimum age requirement for the specific mortgage type. Other eligibility criteria will vary depending on the lender and mortgage product.
Yes, you can release equity from your property to help your child purchase a home or reduce the size of their mortgage. It’s a practical way to provide financial support while maintaining your own living arrangements.
What Are the Costs Associated with Mortgages for Over 50s?
Costs may include:
- Broker Fee: For expert advice.
- Lender Arrangement Fee: Charged by the lender.
- Legal Fees: For the conveyancing process.
- Valuation Fees: For assessing your property.
Some lenders offer no upfront fees, while others may require them. We’ll help you understand the costs involved.
Absolutely! Many homeowners use mortgages for over 50s to fund renovations, adapt their homes for mobility needs, or carry out essential repairs. It’s a great way to invest in your property while maintaining your lifestyle.
A lifetime mortgage is a type of equity release for homeowners aged 55 and over. It allows you to access the equity in your property without selling it, with funds available as a lump sum or in regular payments. The loan is repaid when you pass away or move into long-term care.