What is a RIO Mortgage?
What is a Retirement Interest-Only Mortgage (RIO)?
A Retirement Interest-Only (RIO) mortgage is designed for homeowners aged 55 and over. Unlike a traditional mortgage, you only pay the interest each month, while the loan amount is repaid when you sell your home, move into long-term care, or pass away. This type of mortgage can help manage monthly costs while allowing you to remain in your home.
Who Can Benefit from a RIO Mortgage?
A RIO mortgage may be a suitable option if you:
- Are Retired or Nearing Retirement: If you have a pension or other income sources, a RIO mortgage can provide financial flexibility.
- Have a Standard Interest-Only Mortgage: If your interest-only mortgage is ending and you lack a repayment plan, a RIO could be a viable alternative.
- Want to Stay in Your Home: If downsizing isn’t an option for you, a RIO allows you to stay in your property without full mortgage repayments.
- Have a Stable Income to Cover Interest Payments: You must demonstrate that you can afford the monthly interest payments, typically from pension income, savings, or other financial sources.
- Want to Free Up Some Equity: A RIO mortgage enables you to release equity from your home for home improvements, lifestyle maintenance, or supporting family members.
How to Apply for a RIO Mortgage
If you are interested in a RIO mortgage, our team at Hanley Economic Building Society is here to help. We can guide you through the application process, assess your eligibility, and ensure you make an informed decision about your future.
For more information, contact us today and speak with one of our mortgage specialists.
