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A Retirement Interest Only Mortgage (often referred to as a RIO Mortgage) is a loan secured against the value of your home.
We operate to the highest standards and will always explore other financial options available first before proceeding with an equity release plan. We will only arrange a mortgage if we are completely happy that it meets your best interests. If it’s not suitable for you, we will say so.
To be eligible for equity release through a RIO Mortgage:
You (and your partner, where relevant) must be aged 55 or over.
You must own (or be buying) your own home.
You must have provable income into retirement.
A Retirement Interest Only Mortgage is a loan against the value of your home, which doesn’t have to be repaid until the last borrower dies or moves into long-term care.
With a RIO Mortgage the interest is paid monthly, so at the end of the term, the borrowed amount is repaid by the sale of your home. A RIO Mortgage enables you to release equity whilst remaining in your home.
With a Lifetime Mortgage, interest payments are not required, instead they are ‘rolled up’ and added to the borrowed sum.
With a RIO Mortgage, the interest isn’t rolled up, because you pay the interest monthly. This means when the mortgage term is at an end, due to the last borrower passing away or moving into long-term care, the loan balance will be the same as the original amount borrowed.
To apply for a RIO Mortgage, you must be over 55 and you will need to meet certain affordability checks based on your later-life income.
No, you don’t need to have retired, you just need to be 55 or older.
Yes. If you wish to move home during the mortgage term, you can transfer the mortgage to another property, which will need to meet the lender’s requirements
The lender will have specific conditions that you’ll need to meet.
Yes. The yearly percentage you can pay will vary by lender.
A RIO Mortgage will reduce the value of your estate and therefore the amount left to your beneficiaries.
We endeavour to work with lenders who are approved by the Equity Release Council. Where this is not possible, we will advise you accordingly.
Our property value guide will help you understand how much you may be able to borrow.
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55Plus is a trading name of Mortgage Salad Ltd which is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 566220.
We charge a fee for equity release advice. The precise amount depends upon your circumstances. The maximum fee will be £1,495 payable on completion. We will also be paid commission from the company that lends you money or buys your home.
Registered office: 12 Trinity Close, Tunbridge Wells, TN2 3QP.Registered in England and Wales No. 5941708