Mansfield Begbie Associates Ltd

RIO mortgage

RIO mortgages

RIO (retirement interest only)  mortgages are effectively standard home loan deals with one key difference: the mortgage does not have a set end date and carries on until “a specified life event” is triggered – ie, the borrower’s death or the date they move into a care home. Until then, they continue to pay the interest each month and the loan is ultimately repaid from the sale of their property.

These plans are still based on affordability into retirement and are usually stress tested on 1st death for a couple (based on the spouse with the highest income levels passing away first) and this makes it a non-starter for many people. On top of this there is no real flexibility in repayments and is more of a one off lump sum.

If you do not qualify for a RIO mortgage then a lifetime mortgage may also be an option.

At Mansfield Begbie we offer both RIO mortgages and lifetime mortgages via our trusted partners and their team of experienced equity release and later life lending advisors.