Are you looking to free up some funds to make the most of your retirement? A retirement interest-only mortgage could give you the help you need.
A retirement interest-only mortgage (RIO) is a mortgage that lets you pay the interest monthly, without reducing the original amount (capital) you have borrowed. A RIO is typically designed for people over the age of 50 and older borrowers who may struggle to get a standard residential mortgage.
With most RIO mortgages in the UK, you only repay the loan when you sell your property, move into full-time care or pass away.
Like with a standard mortgage, you’ll have to prove you can afford the monthly interest repayments. To take out a retirement interest-only mortgage, it’s worthwhile getting expert advice from a qualified mortgage adviser.
You might be looking to take out a retirement interest-only mortgage because you want to:
Get a mortgage term extension but are unable to
Buy a retirement property that suits your needs better than your existing home
Release funds from your property to boost your retirement finances
Gift money to loved ones for a variety of reasons
Even if your bank or building society is unable to offer you a new mortgage, our specialist mortgage advisers can search the market to try and find the most suitable retirement interest-only mortgage for you.
If you’re looking at your options and aren’t sure if a RIO mortgage is right for you, here are some of the key benefits and potential drawbacks for you to consider.