First ‘No End Date’ residential over 55s mortgage

First ‘No End Date’ residential over 55s mortgage

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First ‘No End Date’ residential over 55s mortgage

Hodge Lifetime have just released a mortgage product first for the UK market called The 55+ RIO, which will become available from the 11th of June. ‘RIO’ stands for Retirement Interest Only Mortgage.

It is a residential interest only mortgage for over 55’s with no end date or term, which means it will take a borrower through to the end of their life and enables interest only payments until the borrower dies or goes into long term care when the capital the has to be repaid. This is not an equity release mortgage.

This mortgage is based on your main residence and is not a Buy to Let product:

  • Available on properties worth £100,000 or more
  • Max LTV of 60%
  • No minimum equity requirement
  • Choice of 2 and 5 year fixes with rates from 3.44% and has no end date
  • Product fee of £995
  • Loan Amounts from £20,000 to £500,000
  • The mortgage can be used for purchase or re-mortgage
  • Available in England, Wales and Scotland

The loan could be of specific benefit to home owners reaching the end of their existing interest only mortgage term and have no means of repaying the capital saving having sell up or cash in vital pensions or investments.

It can also assist borrowers who:

  • Don’t want to (or can’t due to age) switch to a repayment mortgage as their payments would rocket.
  • Can’t remortgage to interest only with a mainstream lender as the terms on offer are not for long enough, or in many cases the lender will not consider them at all due to age.
  • Are older borrowers wanting to remortgage or buy a new home, in or approaching retirement who have been unable to secure any help through mainstream lenders due to their age and available income streams.

The Retirement Interest Only mortgage allows borrowers with reliable income streams to remortgage their home or purchase a new one. There’s no requirement to ever have to find a way to repay the capital, it’s automatically repaid when the house is sold.

If you require assistance with this type of loan or any property finance please complete the form below and I will be happy to help.

Contact Howard Reuben

Mortgages, Commercial and Bridging Finance, Life Insurance, Wills, Trusts and LPA's
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The social sector in Northern Ireland (NI) does not have the resources to meet the needs of all those who are homeless or in housing stress