Later Life Lending

The necessity for borrowing options in retirement and later life has increased significantly in recent years, with retirement interest-only (RIO) and equity release in particular proving common solutions.

Retirement interest-only is most similar to a traditional residential mortgage. Affordability will be based on current earned income and/or retirement income across the requested term. With a RIO mortgage you make monthly interest payments, which means there is no 'roll up' over time, and the loan only needs to be repaid when the borrower(s) die or move permanently into care. There is the option to choose between a variety of product lengths, and allows for limited capital repayments to be made each year without penalty. This can be a handy option for those looking at a RIO mortgage as a temporary solution, rather than a lifetime one.

Equity release products allow for a roll-up of interest over time. This can be particularly useful for lower or inconsistent inome households, with the amount borrowed based upon age at application and value of the subject property. Equity release products come with a no negative equity guarantee, which allows borrowers peace of mind with no worries of leaving loved ones with a hefty bill to pay. Equity release mortgages can also offer a flexible drawdown facility, helping reduce the interest charged if funds are required at different stages.

We work in conjunction with trusted partners regarding equity release transactions. Use our contact form across or call us on 01483 487915 to discuss how we can help.