Retirement Interest Only Mortgages

Speak to an Expert Advisor

or

Let us Look Into The Best Rates

Why Choose Us

0 %
5-star reviews on Google
0
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market
£ 0
total donated to various charities

Why Choose Us

0 %
5-star reviews on Google
£ 0
total donated to various charities
0
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market

Navigating through the later stages of life can present unique financial challenges. For homeowners seeking to optimise their financial security, retirement mortgages have become a viable solution. In this piece, we’ll shed some light on ‘Retirement Interest Only (RIO) Mortgages’ and why they’ve become a go-to option for individuals over 60.

What Our Clients Say About Us

5.0 Based on 122 reviews from review us onLucy B. ★★★★★ Having Phil as my mortgage advisor was great from the very start! He is down to earth and speaking to him was always a pleasure. The kindness, compassion and support I have been given all the way through what can be a stressful process was immeasurable. Phil and Jardelle worked as a solid team and was able to make me feel at ease all the way through buying my first home. The team were always available and the communication between everyone was always clear and I felt safe in the hands of the company as a whole. Thank you for helping me buy my first home!Flora R. ★★★★★ I worked with Richard (Protection Adviser) for a couple of days to sort out life and critical illness insurance. Absolutely brilliant, he found me and my husband the perfect policy. Very knowledgeable and easy to get on, he definetely makes things easy to understand. Thank you for the great service provided.Matthew R. ★★★★★ I've dealt with Phil at Ascot Mortgages for a while now and Phil always comes back back to me with the right plan.Keep the good work up!rafal W. ★★★★★ I would thoroughly recommend Phil Greenwood at Ascot Mortgages ltd to anyone looking to seek advice on purchasing a home.Phil was absolutely fantastic. He made the process very smooth and easy and was always there to answer any questions I had.Shahid L. ★★★★★ This company has been truly amazing in constantly giving me the support and help i need for my mortgage and for their continuous work ethic guiding customers like myself and educating them into making the best possible decisions. My special mention goes to Phil Greenwood who deserves every single credit for his brilliant work and communication skills. The more I got to work with Phil, the more he gained my respect as he is a hugely likeable man and possibly the best mortgage advisor yet. Even after I finished my time with Ascot Mortgages, I will never lose my trust in the company and I hope they exceed their business and gain even more success and popularity.Best wishes,Shahid Latif and familyPretty L. ★★★★★ Phil helped me renew my mortgage. He was great at keeping me updated with any rate changes and secured a lower rate than at the time my mortgage went through. Thank you Ascot for your supportNikki E. ★★★★★ Huge thanks to Richard Johnson for sorting out all of my insurance policies! I had accumulated a variety of life cover and various other policies over the years that all needed a good review and refresh. Richard was extremely patient and helped me to remove the duplication and choose the best cover to suit our current needs. I have used Ascot Mortgages for over 12 years and have met several members of the team, always finding the right help and support to work through what can be a complicated and stressful time. Thanks again, Richard!Aamir R. ★★★★★ As first time buyers we had very little understanding of how to go about applying for a mortgage. Phil was so helpful in cutting through all of the formalities and helping us to decide which mortgage would be best for us also ensured we collated all the details needed and kept us up to date on progress. The process of finding the right house was very stressful but the process of choosing and applying for the mortgage and life cover has been so straight forward that, at times, we were worried it was all a bit too smooth! Thank you for guiding us through this so professionally and with real understanding and personality.Andrew T. ★★★★★ Working with Richard at Ascot has been a great experience. He listened to us and was very professional throughout. This was our first experience with Richard but we've been using Ascot now for 6-7 years. Thank you all at AscotAngie B. ★★★★★ Always give a great service and find you a mortgage in a timely fashion.Alison is awesomeAndrew M. ★★★★★ We have used Ascot Mortgages for over 5 years now and have had excellent service throughout, primarily with Alison and Kevin. Our latest dealings have been with Richard Johnson who although new to us (and to Ascot I believe) has once again provided the 5 star level of service we have come to expect. His product knowledge is excellent offering a range of options supported with consistent communication and updates, always available on the phone or on email every step of the way.Ali H ★★★★★ Excellent service, a big thanks to Natalia Barry for her excellent support with my buy to let mortgage application, Natalia was professional, transparent, and kept me informed during all the process, and thanks to Jason jones for his assistance and support.david R. ★★★★★ I have dealt with Ascot for many years now and will always go back, recently had all my insurances re done by Richard Johnston at the firm, excellent service, communication and swift actions by Richard. Great deals on all three insurances and would recommend anybody to go to Richard for help. Thanks Richard 👍Eve Alexandra C. ★★★★★ We used Ascot Mortgages to purchase a home as first time buyers, Ellie assisted us with this and went above and beyond to ensure everything went smoothly, all questions were answered, and any queries were solved.As first time buyers, myself and my partner were quite nervous and clueless as to what to expect when getting a mortgage and what not, and Ellie made this so simple and explained everything in a way that we thoroughly understood what was happening with our house buying journey, without it being pure jargon.I can't thank Ellie enough, she truly has been a star during the whole experience and is an asset to Ascot Mortgages.She is someone who I would definitely recommend to friends and family if the opportunity arises, and has made this whole experience a very stress free and exciting one!Thank you for everything Ellie!Emma W. ★★★★★ Alison helped me to get the right mortgage for my current situation and was very supportivehelen L. ★★★★★ Phil Greenwood dealt with my recent remortgage, he made sure I had the best product to fit our HMO criteria. Then chased solicitors for me and made sure I completed around the date I wanted to avoid my ridiculous rate I was about to be switched to. Thanks Phil, great job! Ready for my next mortgage now so I will be coming back 🙂Mark C ★★★★★ Excellent service from an excellent representative. Very professional and helpful company. Thank you for all your helpDamian L. ★★★★★ I recently purchased a buy-to-let from Auction and Ascot Mortgages, in tandem with Ascot Bridging Finance, supported me through the whole process. Once the property purchase via a bridging loan was complete, Ascot Mortgages worked out the best options for me, despite the Banks rising interest rates and spiralling UK inflation and managed to secure me a competitive mortgage rate for that property. I wouldn't hesitate in going back to Ascot Mortgages in the future and look forward to working with them again in the near future. Thank you for everything you've doneJuliet B. ★★★★★ Thank you to Alison for helping us and sorting out our mortgage. Swift, reliable and very helpful. Very much appreciated. God bless you abundantly 👍👌🤝gareth P. ★★★★★ Been with Alison and team for more than 25 years. Needless to say, very happy...Jo T. ★★★★★ We have been using Ascot Mortgages for the last few years and they have done 11 buy to let products for us.We have found Alison, Phil, Jason, Jardelle and the team to be excellent at finding the best product for us and to work at pace when we are buying from auction and have a deadline to meet.Communication is very good and nothing is too much troubleBen H. ★★★★★ I can't recommend Ascot Mortgages highly enough.We have used them for all of our Mortgages . They are professional and friendly and have walked us through all our options, they always have the time to talk to you and go the extra mile to get you the best deal. It wont be long till I'm calling on their services again, I wouldn't go anywhere else.If you want a mortgage, there's only one place to go!Dog J. ★★★★★ Ascot went the extra mile to help me acquire a mortgage. With the help of Jason and Ellie I was able to get a competitive rate after 3 other firms had told me they couldn't help me. Great levels of communication throughout, I would highly recommend!Ursula B. ★★★★★ Alison was very friendly and professional in securing the right bridging for us and at a very competative price. This ensured that we were able to place an immediate offer and not miss out on our forever home. Later her help and support in finally getting our completion over the line was nothing short of a miracle. I would strongly recommend both Alison and the team at Ascot Mortgages.primrose C. ★★★★★ ALISON IS BY FAR THE BEST IN THE GAME. ALL WE CAN SAY IS THANK YOU SO MUCH. They are passionate on customer service, even in my frustrated time Alison, Jadelle, Ellie I could name them all. May the good LORD BLESS YOU.js_loader

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

04.09.2023

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

04.09.2023

What is a Retirement Interest Only (RIO) Mortgage?

A RIO mortgage, one form of retirement mortgages, is a long-term, interest-only loan designed specifically for pensioners and those approaching retirement. Unlike regular mortgages, a RIO is typically repaid when the borrower sells their home, moves into long-term care, or passes away.

With a retirement interest only mortgage, you make monthly payments. These payments cover the interest and keep the loan amount – the capital – the same. It’s an attractive option for those looking to lend against the equity of their property without a specified repayment date.

Advantages of a RIO Mortgage

A RIO mortgage can offer many advantages. Firstly, the fact that you only need to repay the interest each month can make this type of loan more affordable in the short term. This can help to free up more income for you to enjoy your retirement.

Secondly, as the mortgage is secured against your home, there’s no set end date. This means that you don’t have to worry about repaying the entire mortgage amount during your lifetime. An over 55 mortgage like this can offer peace of mind and financial security.

Disadvantages

Like any financial decision, it’s important to consider the potential downsides. Since you’re not repaying any capital, the amount you owe will remain the same unless you make additional payments towards the loan. 

Furthermore, the loan will ultimately need to be repaid. This usually occurs by selling the property, which could impact any inheritance you may wish to leave behind. It’s therefore crucial to discuss such decisions with a financial advisor or a trusted family member.

Mortgage Repayment Calculator

Interest Only Mortgage for Later Life

An interest only mortgage for later life, another term for a retirement mortgage, can be a practical way to utilise the equity in your home whilst keeping monthly payments manageable. However, the decision should be carefully considered and ideally discussed with a professional advisor.

Who Can Apply?

Retirement mortgages are designed for individuals over the age of 60, although some lenders offer an over 55 mortgage. To qualify, you’ll need to demonstrate a steady income in retirement, which can include pension income, investments, or rental income. Lenders will also consider your credit history and the value of your property.

How Much Could You Borrow?

The amount you can borrow will largely depend on your income and the property’s value. Generally, lenders allow you to borrow a percentage of your property’s value, provided that you can afford the interest payments.

In summary, retirement mortgages, particularly RIOs, can be a sensible way to help you maintain your lifestyle or adapt to changes in your circumstances. However, as with any long-term financial commitment, it’s important to seek advice from professionals.

If you’re interested in discussing retirement mortgages further, Ascot Mortgages is here to help. Our team of experts can provide detailed advice, tailored to your circumstances. To find out more, get in touch today.

Alison Gibson

Ascot Mortgage Expert

Remortgage

Remortgaging is applied when you keep

living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.

Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.

Apply for a Mortgage

Get things moving, apply for a remortgage.

Call Now - 01925 711 558

Free unbiased mortgage advice is just a phone call away.

FAQ

The eligibility requirements for a retirement mortgage can vary depending on the lender, but generally speaking, you need to be at least 55 years old, though some lenders may set the minimum age at 60 or 65. It’s also important to have a reliable source of income, which can include pensions, investments, and other retirement income. Lenders will also assess your affordability to pay the monthly payments. As for the property, it must be your main residence and meet the lender’s property criteria.

Yes, it’s possible to use a retirement mortgage to purchase a new property, as long as it’s going to be your primary residence. Keep in mind that the amount you can borrow will still be based on your income and affordability assessments. As with any mortgage, it’s always important to make sure you understand the terms and conditions before making a decision.

The loan amount for a retirement interest-only mortgage is typically determined by two main factors: the value of your home and your income in retirement. Lenders will assess your ability to meet the interest payments on the loan from your regular income. In most cases, the maximum loan-to-value ratio is around 60%, but this can vary depending on the lender’s criteria.

Yes, it is possible to switch from an existing mortgage to a retirement interest-only mortgage, provided you meet the eligibility criteria. This can be a useful option for some people who are nearing retirement or are already retired and are struggling with their current mortgage repayments. However, whether this is beneficial or even feasible will depend on your individual circumstances, the terms of your current mortgage, and the specific rules of the lender you’re considering. It’s always advisable to speak with a mortgage advisor before making any decisions.

Meet Our Team

Video

Contact Us

*Privacy Notice - Any information provided will be treated with confidentiality and will only be accessible within Ascot Mortgages