Retirement Interest Only Mortgages

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5-star reviews on Google
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years we have been as independent mortgage and protection brokers
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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.

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5.0 Based on 145 reviews from review us onElliot E. ★★★★★ Phil Greenwood was fantastic in assisting us in getting our BTL mortgage when several other mortgage brokers were not able to, given our particular circumstances and self employed status. From starting with an initial call right through to the finish, communication was excellent and we're absolutely thrilled. Thank you, Ascot Mortgages for such a professional service.vanessa G. ★★★★★ We had great experience with Natalia. She provided prompt and excellent service throughout our house purchase process.We highly recommend Natalia for mortgage adviseFlora 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.Debbie P. ★★★★★ Cannot speak highly enough of Ascot Mortgages who have helped me on my journey over the last seven years. They have made the dream property possible twice. Thank you to Alison, Jardelle and all the team. I am very grateful.Areti D. ★★★★★ Absolutely thrilled with the exceptional service provided by Ascot Mortgages Ltd and especially by Natalia Barry! Even though our home purchase hasn't been completed yet, we couldn't wait to share our positive experience. From the moment we reached out, their professionalism and expertise shone through, making the daunting process of securing a mortgage a breeze.Not only did Natalia navigate the intricacies of the mortgage market with finesse, but they went above and beyond by suggesting other high-quality services, including solicitors and insurance providers. This comprehensive approach is making the entire home-buying journey seamless and stress-free.Natalia took the time to understand our unique needs and financial situation, ensuring that the options presented were tailored perfectly.Communication is prompt and clear throughout, leaving us feeling informed and confident at every stage. Natalia had our best interests at heart, going the extra mile to secure a fantastic mortgage deal.We cannot recommend Ascot Mortgages and Natalia highly enough. If you're in need of mortgage assistance, look no further. With their expertise and dedication to client satisfaction, you're in the best hands possible. A huge thank you to Natalia for making our home-buying experience a dream come true!Ashley Cox 1. ★★★★★ Would 100% recommend. Myself and my partner are currently going through the mortgage process as first time buyers. Natalia Barry has dealt with our application from day one. She has always been on hand to help, informative throughout and reliable when we have had questions. She has given us several options and broken them down into simple terms to help us. Natalia has truly been exceptional who deserves every bit of credit. We certainly got lucky having her as our first mortgage consultant.Dominik S. ★★★★★ Alison and the Ascot Team are excellent. I have used them for 5 years now and they deliver the most competitive mortgage deals fast. Just what I need. Thank you!Eric T. ★★★★★ We have dealt with Ascot Mortgages twice. Once for a mortgage about eleven years ago and recently for life insurance.In both cases we were treated with the utmost respect and professionalism.In the case of the life insurance application, we considered ourselves to be problem customers because of our age and numerous health issues.Richard Johnson, who managed this application couldn't have been more helpful.He worked in our best interest and was dedicated to providing an excellent service.We were kept up to date through all of the stages of the application and when our doctors were very slow in producing medical reports for the insurance company he persisted where others might have given up.The service we had from Richard was pleasant and professional throughout some difficult stages.My wife and I have no hesitation in recommending Ascot Mortgages.Zack R. ★★★★★ Having dealt with Ascot Mortgages and Alison for many years now I can say that you wont find a more professional, knowledgeable and efficient company to help with your mortgage. Alison is patient and makes the whole process seem easy. She has the answer to any question you have and seems to genuinely care. I can not recommend enough. I am sure I will be using Ascot Mortgages for years to come.Umair Z. ★★★★★ It has been a fantastic experience to work with both Phil and Jardelle at Ascot Mortgages to secure a mortgage product for my first home. Phil made the mortgage process smooth and easy. They are professionals and know what they are doing. Very pleased with the service and communication. would highly recommend them.Hello at NLP West M. ★★★★★ I needed a buy to let re-mortgage. Ascot were efficient from start to finish. I can recommend them completely especially because they can search the whole spectrum of mortgage lenders and meet the clients needs. never waiting for staff to get back and always kept me in the loop.Onohomen O. ★★★★★ ZHOU J. ★★★★★ It has been a brilliant experience to work with both Phil and Jardelle at Ascot Mortgages to secure a great mortgage product for our next home. Given how challenging the current market is, they have done a fantastic job to meet our needs with their expertise, professionalism and effectiveness. We would highly recommend their services to whom seeks help with their property purchase.Nicholas S. ★★★★★ Fantastic service. Ellie and Jardelle were always quick to reply to any queries and very helpful throughout the process. Highly recommend!Stacey S. ★★★★★ Jason was brilliant to work with! Always on top of the transaction! Would highly recommend 👍Scott ★★★★★ Although I've not bought anything yet, they (Jason in particular) have been super helpful in my search for the right mortgage deal, whilst also giving an honest opinion during these difficult times. Would highly recommend.Sandra I. ★★★★★ Fantastic from start to finish! Natalia and Jason found me the best rate for my remortgage and they were extremely efficient! Best service I’ve ever received from a brokerage company. Thanks so much.Virmantas N. ★★★★★ Amazing service and great communication. Ellie Morgan had quickly completed all requests and over delivered all expectations.Highly recommended for those who want to get the stuff done without any delays!David W. ★★★★★ I have used ascot for 3 renewals since they done helped me with my purchase which was complicated and will continue to use them going forward. Very fair prices and very helpful and knowledgeable even with just general information.Adam B. ★★★★★ Natalia made life very easy for us when remortgaging. Third time using ascot always a breezeTaff G. ★★★★★ Ascot Mortgages have been brilliant. Easy to work with and incredibly helpful. I am always happy to recommend them. Natalia and Jason have made the whole process much easier than I was expecting. Excellent service.Daryl L. ★★★★★ We've had a fantastic experience with Natalia Barry and Jason Jones at Ascot Mortgages for our property purchases and refinancing. Their expertise, coupled with genuine care and understanding of our needs, made the process smooth and stress-free.They were consistently communicative, keeping us informed at every step. Their assistance in consolidating our protection cover was invaluable, simplifying what could have been a complex process.What set them apart was their personal touch – always polite and ready to pick up the phone for a chat. This level of personal engagement is rare and much appreciated.In short, Natalia and Jason are not just skilled professionals but also truly dedicated to their clients. We highly recommend their services to anyone in need of mortgage advice.Sarah A. ★★★★★ I have used this firm for several years and they have always been super helpful and supportive, attentive and resolved issues in really useful ways. Shout out to Alison, Ellie and Jardelle (and the team!)Georgia W. ★★★★★ We worked with Ellie to secure our mortgage and protection, and she was a dream! Being a first time buyer, I was quite clueless about the process, and in a time where mortgage rates have been quite high, she worked right til the end to make sure we were getting our mortgage at the best possible rate and was always available to answer all questions I had. Can't recommend enough 🙂Richard D. ★★★★★ 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.

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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.

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