Retirement Interest Only Mortgages (RIO Mortgages)

When you get to 55 mortgage options may be increasingly limited with many homeowners finding themselves in quite difficult situations when looking at refinancing their current property. A retirement interest only mortgage (RIO) is a fairly new mortgage product created as a solution for home owners over the age of 55. A common use of a `R.I.O.` mortgage is to settle a currently outstanding interest only mortgage and borrow some extra money at the same time.

When Does A Retirement Interest Only Mortgage End?

A retirement interest only mortgage allows a home owner who is over 55 to either refinance a current mortgage or release equity from a property with a new mortgage on a property that is mortgage free. You can also use it to release money from your property for home improvements, renovations or to improve your lifestyle. Unlike a traditional mortgage a R.I.O. mortgage has no defined mortgage term and comes to an end when the last remaining borrower passes away or is moved into a permanent long term care home. Throughout the mortgage term you will repay only the interest each month on the amount of money that was borrowed, while the balance will neither decrease or increase over the mortgage term. You can also make optional overpayments to actually reduce the balance as well.

To find out how much you can borrow and the repayments without any obligation call on 0800 298 3000 (freephone) or 0333 003 1505 (mobile friendly) to talk through your scenario confidentially, alternatively fill in our short No Credit Check Online Enquiry Form

What Is The Maximum Loan To Value On A R.I.O.?

A retirement interest only mortgage can be used for almost any purpose, including remortgaging and settling an existing mortgage if a balance is still left at the end of the current term. Maximum loan to values vary according to your age, property condition and lender criteria but 60% LTV is likely to be the maximum allowed. Borrowing this way can also be used to access to your funds from the equity in your property to enjoy your retirement and make it more comfortable. Alternatively, if you are struggling with unsecured debts, you may wish to look at consolidating them into a more manageable monthly payment. Always seek advice before carrying out debt consolidation.

Can You Get A Retirement Interest Only Mortgage If You Have Retired?

Yes the R.I.O. is a mortgage product designed for home owners over 55 whether they have retired or not. The amount you can borrow is calculated on your affordability to meet the interest only repayments ongoing. So your income and expenditure is established to see what you can afford to borrow. There are also limits on how high the loan to value can be. Because only the interest needs to be paid you may be surprised at how much you could borrow. Also most income sources can be taken into account including private pensions, state pensions and permanent benefits.

What Is the Maximum Age For A R.I.O.?

This varies from lender to lender but many have mortgage deals up to the age of 80 years, but even if you are over 80 their may be alternative mortgage or equity release plans that may be suitable.

With the large increase in property values over the last 30 years, many people find their home is by far their most valuable asset.

At the same time people are living longer but on a fixed income. Often there is a need for extra cash for special projects or simply maintaining your standard of living.

ROI`s or Equity Release are ways of releasing either a lump sum or an income from your home while continuing to live there.

It can be the right option for some homeowners over 55 years old but there are many factors to consider and getting quality Independent Financial Advice is vital.

First Choice Finance have a wealth of experience in providing retirement advice including advice on Equity Release plans and R.I.O. mortgage.

We use our wide experience to consider all the factors, which have a bearing on the decision about whether to proceed with a Retirement Mortgage, Standard Repayment Mortgage or Equity Release.

Lifetime Mortgages - An Alternative To Retirement Interest Only Mortgages

At First Choice Finance we provide access to a variety of different finance options for anyone over the age of 55, including Lifetime Mortgages. In an ageing population this product is becoming an increasingly significant product to help you to plan how to release cash from your property without having to make any monthly repayments to the lender.

Providers - We provide access to the UK`s leading lenders including comprehensive and full information on product details and lifetime and R.I.O. scheme options.

Products: For many older homeowners, Lifetime Mortgages are designed to unlock some of the value in their homes. Particularly where they are in a `equity rich but cash low` scenario.

This special type of loan provides a lump sum, or monthly income proceeds, typically to:

• Increase quality of life by supplementing retirement income.
• Make home improvements.
• Lend or Give money to help family members.
• Buy a new car or holiday home.
• Reduce an inheritance tax liability.

The loan and any interest is normally repaid in one or more of the following situations:

• If you move into long term or residential care.
• If you move into sheltered accommodation.
• If you buy another house to live in.
• If you choose to repay all or part of the loan.
• If the mortgage lender uses their legal right to take possession of the mortgaged property under the terms of your contract.
• On death of the last remaining borrower.

Equity Release Lifetime Mortgages This is a lifetime mortgage. To understand the features & risks ask for a personalised illustration. Our fee is £985 which is only payable upon completion. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME, OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.