Retired borrowers who are buying or remortgaging their home, have at least 50% deposit/equity and wish to pay the monthly interest only, with the loan repayment being from the future sale of the property.
Borrowers who are under the age of 55 or who want a fixed rate of interest.
5.59% variable, which includes a 2.51% discount from our Standard Variable Rate for 5 years.
Our Standard Variable Rate* for the remainder of the term, currently 8.10%.
7.5% APRC
Arrangement fee - £499 (Can be paid up front or added to the loan)
Funds transfer fee - £20 (payable before completion)
Mortgage exit fee - £100 (payable when the mortgage is fully repaid)
Standard Valuation Fee – (Amount varies dependent on the property value)
None.
A full or partial capital repayment, which exceeds 10% of the capital balance amount in any one year will attract an early repayment charge of:
5% in the 1st year
4% in the 2nd year
3% in the 3rd year
2% in the 4th & 5th year
This will not be charged if the sale of the property and repayment of the mortgage is related to the death of the borrower, or if a joint mortgage, the death of the final surviving borrower.
Purchase or remortgage
Interest-Only.
50%
Minimum £25,000 – Maximum £750,000
There is no maximum age, but all borrowers must be at least 55 at date of application, be retired or planning to retire in the next 2-5 years.
This mortgage does not have a specified mortgage term. We will only require full repayment within 6 months of when the property is permanently vacated by the borrower (or final surviving borrower, if in joint names), due to death, moving to another property, or entering sheltered accommodation or long-term care.
This product is portable and can be transferred from the existing property to a new property.
The interest rate for this mortgage has a ‘floor’, which means that it will never fall below 2.69% during the discount period.
If you add the arrangement fee to the loan, then interest will be charged on it resulting in a greater amount payable over the term of the mortgage.
Property must be in England and Wales with a value of £140,000 or more.
Please refer to our Retirement Interest-Only page for full product details.
Mortgages are subject to underwriting.
This information is to help you understand the typical cost of this mortgage and is not representative of your personal circumstances.
A mortgage of £78,276.00, payable over 19 years, on an interest-only repayment basis, with an initial payable rate of 5.59%, which includes a 2.51% discount from our Standard Variable Rate (SVR) for 5 years and then on our SVR, currently 8.10%, for the remaining 14 years. The initial term would require 60 monthly payments of £364.64, followed by 168 monthly payments of £528.36.
The total amount payable would be £190,272.88, made up of the loan amount (£78,276.00), plus interest (£110,642.88), Arrangement Fee (£499), Standard Valuation Fee (£485), Solicitor Fee (£250), Funds Transfer Fee (£20), and a Mortgage Exit Fee (£100).
The overall cost for comparison is 7.5% APRC.
We've put together some important information about RIO mortgages that you should pass on to your client before applying
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