Everything you need to know about Cash ISAs
Check out our back to basics, easy to understand guide to Cash ISAs.
It’s been over a decade since the 2008 financial crash shook the world and wiped £90 billion off the value of the UK’s biggest companies.
As a result, borrowing became more difficult for those heading into their later years, with many lenders lowering their maximum lending age limits and reducing the provision of interest-only mortgages.
However, since the Financial Conduct Authority (FCA) improved access to mortgage borrowing for those in retirement, the door finally reopened for everyone seeking finance; no matter their age.
So, what is a Retirement Interest-Only (RIO) mortgage?
RIO is short for Retirement Interest-Only – the RIO mortgage allows borrowers to pay a monthly interest payment with no set end date, as it will run until a ‘significant life event’, such as the borrower then moving into long-term care or dying. It is at this point the RIO mortgage is repaid, by the sale of the mortgaged property.
Keep reading for further information:
Who would be eligible for a Newbury Building Society RIO mortgage?
Our RIO mortgage is designed to support borrowers in later life who either want to move or do not want to downsize their current property and wish to remain in their current home. Borrowers would need to be aged 60 and above, be retired and in receipt of their pension or other ongoing income.
Why might a person want to borrower in later life?
There are many reasons why older borrowers might want to take out a RIO mortgage:
- To purchase a retirement property which better suits their needs
- To fund home improvements or extend their current property
- To release equity to top up their pension pot
- To gift funds (equity) to a loved one who is looking to step onto the property ladder
If you are interested in a RIO mortgage, we advise that you speak to an independent financial adviser who will be able to explore the options open to you and determine which may suit your circumstances best.
Is a RIO mortgage different to that of a standard residential mortgage?
A RIO mortgage is very similar to that of a standard residential mortgage, with two key differences:
- The loan is usually repaid when the borrower either sells the house, moves into long-term care or dies
- The borrower only has to prove they can afford the monthly interest repayments because the method of repayment the loan is already agreed
Essentially, the ‘retirement’ element of the mortgage means there is no defined date at which the capital has to be repaid.
For further information, visit our dedicated lending into retirement page. Alternatively, visit your local branch to book a mortgage appointment or submit a contact us form website and a qualified mortgage adviser will be in touch.
Mortgage appointments can be undertaken in a local branch, by video call or by telephone.
*all figures and data correct as of March 2019
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
