Retirement Interest Only Criteria

As repayment of a RIO mortgage is triggered by a life event, unless indicated, the Society will assume a term in line with the guidelines below. If the mortgage term is reached, the Society will arrange for it to be extended.

2

£17,500 per application (the mortgage needs to be affordable by both applicants)

Mortgage, loan, HP arrears and missed payments => 3 years prior to application: Status 1s and 2s are accepted – status 3 or above not accepted.

Mortgage, loan, HP arrears and missed payments within the last 3 years are not acceptable.

Credit card, mail order, utility commitments => 3 years prior to application: Up to and including status 2s are acceptable.

Credit card, mail order, utility commitments =< 3 years prior to application: Status 2 – OK to proceed subject to the commitment being up to date for a minimum of 12 months prior to application. Status => 3 are OK subject to commitments totalling less than £500 and being up to date for a minimum of 12 months prior to application.

With a RIO mortgage, the borrower is required to pay the interest payments each month and the amount which can be borrowed will be based on their ability to maintain these payments throughout the life of the mortgage.

The capital will be repaid through sale of the property on the occurrence of the earlier of the following life events:

• Death
• Leaving the property with no reasonable prospect of returning (e.g. moving into residential care, sheltered accommodation or living with family long-term)
• Acquiring another property for use as the main residence
• Selling the property without transferring the loan to the new property

Where there are joint borrowers, the life event is triggered by the surviving borrower.

We will consider remortgage applications where the applicant has been the registered owner for the past 6 months. Refer if less than 6 months.

Sale of property.

England and Wales.

• The property must be the main residence of the applicant(s).
• Properties must be of traditional construction.
• Timber framed properties may be considered if brick clad.
• New build houses subject to NHBC/Local Authority Building Control Scheme/Premier/Checkmate (Castle 10)/Buildzone/Zurich/ICW (International Construction Warranties)/AHCI Ltd or Professional Consultants Certificates.
• Purpose built flats/maisonettes are acceptable (new builds not acceptable). Must be leasehold.
• Flats/apartments more than 4 storeys. If above 4 storeys, they must be serviced by at least 1 lift. Flats above 6 storeys are not acceptable.

• Properties must be of traditional construction.
• HMOs, self-builds, properties held in Trust, present or former hotels/guest houses/B&Bs, commercial properties (even if applicants intend to convert back to residential).
• Holiday homes.
• Prefabricated properties.
• Studio flats and ex-local authority flats/maisonettes.
• New build flats.
• Flats above commercial property.
• Properties under 5 storeys with a flat roof are unacceptable security.
• Any construction covered by Housing Defect Legislation such as high alumina cement, prefabricate reinforced concrete, large panel system, BISF.
• Any property where an EWS1 form for wall cladding is required.

For leasehold, there must be a minimum of 85 years’ unexpired lease at the start of the mortgage and 55 years remaining at the end.