Repaid from the sale of your client's home when the last remaining borrower dies or moves out their home into long term care. With an interest-only mortgage your client only makes monthly interest payments, so your client will need to make a lump sum payment at the end of the mortgage. Repaid through the monthly payments over the loan term. Your client's income and expenditure is assessed to ensure they can afford the mortgage. Your client's income and expenditure is assessed to ensure they can afford the mortgage. The mortgage lasts until the last borrower dies or moves out of their home into long term care. The term is fixed for a set period of time. It's possible with some products to pay the interest in part or whole. No monthly payments are required during the lifetime mortgage. Your clients are required to make a monthly payment. The interest rate is fixed for the duration of the mortgage.
The interest rate is fixed for a set period or for the duration of the mortgage. The most common are variable or fixed rate. There are a variety of interest rates your client can choose from. This is sometimes called compound or rolled up interest. Any unpaid interest charged on the mortgage is added to the loan. Interest is charged on the mortgage monthly. Interest is charged on the mortgage monthly and your client makes monthly payments. Interest is charged on the mortgage monthly and your client makes monthly payments. RIO is a type of residential mortgage for over 55s.Ī loan secured against your client's home throughout their lifetime. May be either repayment (capital and interest) or interest-only.Ī loan secured against your client’s home. As a last resort, may have their home repossessed if they fail to make interest payments.Ī loan secured against your client’s home.
Need to make an Early Repayment Charge if they repay the loan early.It's important for your clients to understanding that by taking out a RIO, it may: Helping family - children and grandchildren.They may choose to use it for items such as: A RIO is a loan secured against your client's home. When a client takes a RIO, at that point they may be able to take a larger mortgage than they currently have, depending on affordability checks. This could be a new mortgage or to replace their current interest-only mortgage with a mortgage that allows them to continue making interest-only payments for the remaining time that they live in their home. Those who want to borrow a minimum of £10,000.Ī RIO exists for the over 55’s who're looking for an interest-only mortgage during retirement years.Our eligibility assessment will be based upon the lowest income of any joint application in order to ensure that the remaining borrower will still be able to afford the mortgage. Applicant(s) that meet our specific lending criteria.Those that can demonstrate their ability to afford the monthly interest payments now and when they're no longer working.Property must be worth a minimum of £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties.
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