Freephone 0800 802 1051
Freephone 0800 802 1051

Buckinghamshire RIO Mortgage Details (LPA)

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RIO Mortgage

  • Type Discounted
  • Rate 3.39%
  • APR 5.00%
Incentives:
  • Free Application
Offers:
  • Fixed & Variable Rates
  • Interest-Only Mortgage
  • LPA Requirement
  • Maximum LTV - 65%

Background

The Buckinghamshire has been a mutual building society since it was founded in 1907 by local businessmen. It offers uncomplicated savings accounts as well as tailor made mortgages to all its members across England and Wales. Located in the village of Chalfont St Giles in south east Buckinghamshire, their philosophy of 'doing the right thing' is at the heart of everything they do.

The Buckinghamshire provide a range of mortgage products, which include specialist Retirement mortgages. The society do not consider lending to retirees an issue if they are in receipt of verifiable income, allowing elderly homeowners availability to Retirement Interest Only Mortgages (RIO’s) on their property.

Eligibility

The Buckinghamshire Retirement Interest Only Mortgage (RIO) is designed specifically for homeowners who are over the age of 55 and require access to the equity in their property to enable them enhance their lifestyle in retirement.

This RIO mortgage could be used as a remortgage vehicle or to assist with a house purchase.

The Buckinghamshire RIO Mortgage is available on both a single and joint life basis with a minimum age of the youngest homeowner being 55. There is no maximum age limit.

The minimum loan on this RIO mortgage is £50,000 with a maximum of loan upto £500,000. For mortgage applications above £500,000 please call the Equity Release Supermarket team on Freephone - 0800 802 1051 to check qualification and request your bespoke quotation.

There is no specific minimum acceptable level of income. The Society uses income and expenditure analysis instead of income multiples to assess affordability.

Buckinghamshire's minimum property valuation on their retirement mortgage is £180,000, with a minimum equity remaining of £130,000. Additionally, the property must be the homeowner's main residence and must be located within England and Wales.

Adverse credit such as arrears, defaults and CCJ’s can be acceptable, dependent upon the amount, longevity and level of credit registered. Please contact the Equity Release Supermarket team on 0800 802 1051 to check for eligibility.

Features

RIO Mortgages provide an initial tax-free lump sum cash release for immediate use, with the ability to make monthly repayments of only interest to the Buckinghamshire.

There is no maximum term - it will run for the duration of the last surviving homeowner. There is no need for any repayment strategy such as endowment, investment or repayment basis. The loan is an interest-only lifetime mortgage with no end date set.

The maximum loan-to-value (LTV) on this interest-only mortgage is 65% of the property valuation, subject to qualification of income to support this figure.

Unlike equity release schemes, there are no protections in place with this mortgage product if the borrower has difficulty making payments. This is a residential mortgage which means that there are no safeguards if something unexpected takes place, preventing the homeowner from being able to make payments. So, to make use of this product, homeowners must be confident that their income will stay sufficient & constant enough to meet their payment obligations.

The homeowner must make all monthly interest payments as they fall due until the RIO mortgage finishes. This means that the homeowner could put their home at risk if they do not keep up with payments.

If a single applicant passes away before the end of the term, the mortgage will still have to be repaid, usually by sale of the property. On joint applications, the mortgage will continue in the name of the survivor.

The Buckinghamshire Building Society aren't members of the Equity Release Council and consequently their plans don’t have the code of conduct applicable like other equity release schemes such as the no negative equity guarantee.

Early repayment charges (ERC’s) under the the Buckinghamshire RIO Mortgage are always fixed for the length of the specific fixed or variable term (e.g. 3 years).

Options

This Buckinghamshire Retirement Mortgage enables any homeowner to spend their tax-free cash as they wish, but unlike roll-up equity release schemes also have the ability to make monthly interest-only repayments to control the future balance as they think fit.

The society will accept applications which are based on retirees house purchasing, remortgage business and on unencumbered properties.

Additional borrowing may be available with the Buckinghamshire RIO Mortgage, but availability and approval is not guaranteed. The amount available is directly related to the homeowner’s ability to afford the higher loan amount and will therefore go through the same affordability verification process.

The mortgage is not portable and cannot be transferred to a new property.

The Buckinghamshire RIO mortgage usually has fixed and discounted rates within its product range. However they are subject to change, hence contact the Equity Release Supermarket team on Freephone 0800 802 1051 for all the latest interest rates on offer.

Once a specific deal ends, it will revert to the lenders standard variable rate, unless another deal is selected before or at expiry.

To obtain further information, or to request a quotation on the societies RIO mortgage, please contact the Equity Release Supermarket team on 0800 802 1051 today.

Practicalities

This Retirement Interest Only Mortgage is ideal for the homeowner who wants to only make monthly interest payments over their lifetime and happy to provide proof of affordability. With this product, the homeowner is able to simply make interest only payments for the rest of their life.

RIO mortgages will ensure the balance will always remaining the same as it started, assuming repayments are maintained. This strategy is ideal for those looking to protect and maximise their inheritance, or looking to retain as much capital as possible for taking equity release at a later date.

This product is ideally suited for those looking for an interest-only mortgage and do not want to downsize, but remain in their home.

RIO’s can prove useful for homeowners who aren’t quite ready for equity release, and would prefer to take themselves to a point in the future when they feel they are a better age, or wish to stop making repayments. They are also ideal for those looking for an interest-only mortgage and do not want to downsize, but remain in their residence.

Alternatively, where homeowners can’t get a mainstream mortgage, or even where an interest-only mortgage needs repayment, the Bucks RIO mortgage can provide an excellent solution.

Another concept for these RIO mortgages is that Buckinghamshire are effectively offering an interest-only bridge facility into retirement. Maybe this is to a certain point where a repayment vehicle becomes available, such as a tax-free lump sum from their pension, or drawdown by crystallization of pension funds.

***the rate quoted above is a 2.20% discounted rate for 3 years with requirement for an LPA being in place

To obtain further information or to request a quotation on the Buckinghamshire Building Society RIO Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 802 1051.

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