Are you looking to help your loved ones financially, or do you want more money to further enjoy your retirement?
If you’re looking to make more of your free retirement time and need more money, or if your loved ones are struggling to get onto the property ladder, need help towards paying off their university fees or arranging a wedding, then a Retirement Interest Only mortgage or RIO might be an option for you.
House prices have increased substantially over the last decade, which means if you own your home, you may have equity tied up which can be released without selling your home.
Retirement Interest Only mortgages - the alternative to traditional mortgages
Getting a mortgage in later life has traditionally been difficult, but the Retirement Interest Only (RIO) mortgage helps older borrowers with an alternative way of raising funds without selling your home or having to make large monthly capital repayments.
What are the benefits?
- It allows you to choose the lifestyle you want in retirement
- It gives you the option to release funds to make improvements to your home
- It’s a way of helping family members out with money to buy their first home, pay for their dream wedding or pay university fees or loans
- It can plug the gap left by a standard Interest Only mortgage
- With the RIO mortgage, when the property is eventually sold the loan is repaid and the remaining equity stays within the family.
Who is RIO for?
RIO mortgages are available to those over the age of 55 and who have a reliable income that will allow them to make payments now and in the future. You will be able to borrow up to 40% of the value of your home as a cash lump sum and will be charged interest only on the loan.
Unlike standard interest-only mortgages there is no set end date for settlement of the loan, borrowers pay monthly mortgage interest until they sell their house, go into long-term care, or pass away. At this point the loan is repaid by selling the house.
Is RIO right for you – talk to the experts?
If you’re interested in finding out more about a RIO mortgage call our Nottingham Mortgage Service advisers on 0344 481 0013 or find your nearest Nottingham Building Society branch to talk to an adviser face-to-face.
Do you qualify for Member Rewards benefits?
If you have a savings balance of at least £500 and have either held one of our savings accounts for at least the last 12 months or you hold a Nottingham Building Society mortgage, you qualify for The Nottingham's Member Rewards loyalty programme. In addition to many other benefits, which you can keep yourself or pass on to family members, you are eligible for fee free advice on whole of market mortgages, a service which is typically £249.