Winchester Lifestyle Aug - Sep 2021

All you need to know
about Retirement
Interest-Only (RIO)
mortgages
It’s been over a decade since the financial crash wiped
billions off the value of the UK’s biggest companies.
As a result, borrowing became more difficult for those
heading into their later years with many lenders lowering
their maximum lending age limit and reducing the provision
of interest-only mortgages.
However, since the Financial Conduct Authority (FCA)
recently improved access to mortgage borrowing for those
in retirement, the door finally reopened for everyone seeking
finance; no matter their age.
What is a RIO mortgage?
RIO mortgages – short for Retirement Interest-Only – allow
borrowers to pay a monthly interest payment with no set
end date as it will run until a ‘significant life event’, such
as the homeowner moving into long-term care or dying.
It is at this point the mortgage is repaid by the sale of the
mortgaged property.
Who eligible for a Newbury Building Society RIO
mortgage?
Our RIO mortgage is designed to support borrowers in later
life who either want to move or do not want to downsize their
current property and wish to remain in their home. We lend
to those aged 60 and above who are retired and in receipt of
their pension or other ongoing income.
Why might a person want to borrower in
later life?
There are many reasons why older borrowers might
want to take out a mortgage:
• To purchase a retirement property which better
suits their needs as they get older
• To fund home improvements or extend their property
• To release cash to top up their pension income
• To gift funds to a loved one looking to step onto the
property ladder
Always speak to an independent financial adviser who
will explore your options with you and determine which
route suits your circumstances.
Is a RIO mortgage different to that of a standard
residential mortgage?
A RIO mortgage is very similar to that of a standard
residential mortgage, with two key differences:
1. The loan is usually repaid when the borrower either sells
the house, moves into long-term care or dies
2. The borrower only has to prove they can afford the
monthly interest repayments because the method of
repayment the loan is already agreed
Essentially, the ‘retirement’ element of the mortgage means
there is no defined end date the capital has to be repaid by.
Our mortgage appointments can be undertaken in branch,
by telephone or by video link. If you would like to talk to a
qualified mortgage adviser about RIO mortgages, contact
us to book an appointment.
Winchester branch:
143 High Street, Winchester SO23 9AY.
Call: 01962 852716
Email: winchester@newbury.co.uk.
Cliff Osborne,
Winchester Senior Branch
Manager
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY
BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME
MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON
YOUR MORTGAGE.
Newbury Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority (Financial Services Register number 206077). English Law applies and we will communicate with you in English. We are
participants of the Financial Ombudsman Service. We have a complaints procedure which we will provide on request. Most complaints that we
cannot resolve can be referred to the Financial Ombudsman Service. 8418
Newbury
Building Society