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Whatever your needs for later life lending, be it Equity Release, Lifetime Mortgage or Retirement Interest Only Mortgage (RIO), our highly experienced advisers are waiting for your call.
Over 55’s Lifetime Mortgage
These are one of the more popular types of an equity release plans. By using your equity, you can access the value tied up in your home.
Unlike standard residential mortgages, which run for a desired fixed term, the lifetime mortgage is designed to run for the rest of your life. During this period, the property remains 100 percent in your name, and you are free to live there until you die or move into long-term care. This could be a great alternative if you need some extra money, but don’t want to downsize to a cheaper property.
An Equity release product traditionally requires no repayments to be made until the death of the last surviving borrower or being placed into long-term care.
The interest will compound or roll up and thus increase over time. Any proceeds left after paying off the provider are then passed into your estate. It will be at this point it will be distributed to your beneficiaries.
Over 55’s Lifetime Mortgage (Payments Allowed)
Recent changes have benefited customers with products allowing you to service, or pay, some or all of the interest. This will help against increasing loan amounts.
You can opt to stop these payments at any given time. These offer a much more flexible and “hybrid” offering.
Payments from equity release lifetime mortgages are flexible, too. You can decide whether to take the cash as a lump sum or in several smaller chunks known as ‘drawdown.’ In both instances, the money released is tax-free and you are only ever charged interest on the amount you withdraw.
Retirement Interest Only Mortgage (ROI)
Introduced by the Financial Conduct Authority in March 2018, Retirement Interest Only (RIO) mortgages were created for mature borrowers who want the security of a mortgage with no end date, who can keep up with the interest payments each month.
Unlike other mortgages, you won’t repay the loan until you move into long-term care or pass away.
RIO mortgages are offered by mainstream lenders and unlike equity release, you have to be able to show affordability for the amount you wish to borrow.
You are also contracted to pay the monthly interest each month. This will not compound, however, you cannot stop these payments within the mortgage or you could face repossession.