What is a Retirement Interest-Only Mortgage?

A retirement interest-only mortgage (RIO) is a way for older homeowners to borrow in retirement and is based upon your retirement (pension) income.

Much like with a standard interest-only loan, borrowers only need to repay the interest rather than the capital – which can be a lot more achievable for those on a pension income.  There’s usually no set repayment date; rather, when the borrower dies or goes into care, the house will be sold and the mortgage repaid, with any additional value in the house forming part of your estate.

What are the Benefits of a Retirement Interest-Only Mortgage?

• Your monthly repayments are more affordable than a repayment mortgages 
• No need to demonstrate a suitable plan for repaying the mortgage
• You can stay in your home with the property being sold after you die or move into long-term care to repay the loan
• Removes the worry of repaying the capital sum owed in retirement
• Avoid having to downsize to a smaller property
• The loan term is not fixed
• Generally cheaper when compared to most Lifetime Mortgages

How Can Friends Capital Help?

Friends Capital have pre-existing relationships with lenders that welcome retirement interest only mortgages. We can search the entire market and get access to the best and most exclusive deals available. Then we will choose the deal that are most appropriate to your personal circumstance. We can:

• Find you a lender that offers Retirement Mortgages only mortgages
• Find you a deal appropriate to your personal circumstance
• Offer unbiased financial advice
• Give advice on what mortgage lenders will require, including giving you advice on an exit strategy for the mortgage end
• Give you a no obligation mortgage quote
• Deal with all the paper work, liaise with the lenders and solicitors. We will also make sure the application goes through as quickly as possible

Either, book an appointment online or request a call back below.

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