Case study: Retirement Interest Only

Our Retirement Interest Only (RIO) mortgages are another option in later life. Clients can release funds from their home without the worry of interest rolling up and eating into their beneficiaries’ inheritance. The capital lump sum is only repaid upon a life event, such as bereavement or the applicant moving into long-term care.

Here's how we were able to support Joan and Paul with a RIO solution. 

Meet Joan and Paul…

Joan and Paul have had their interest only mortgage for the past 25 years and are approaching the end of their mortgage term.

They’ve lived in their property for 30 years and their home is full of memories, with the benefit of being in an area close to transport links, family members and facilities.

What is their lending problem?

With their 85th birthdays looming, their options for a new mortgage are limited. Rejected by high street banks due to their age, their only alternative was to downsize or consider equity release.

What was our solution?

With a RIO mortgage, Joan and Paul were able to transfer their existing mortgage and add a little extra, and can continue to make interest only payments without worrying about interest rolling up and eating into their children’s inheritance. They’ve been able to stay in their own home and install the stairlift they’ve been considering for some time.