Mansfield Building Society RIO Mortgage

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RIO Mortgage

Type Fixed
Rate 3.35%
APR 5.60%

Offers:

Fixed & Discounted Rates
Interest-Only Mortgage
Drawdown Option
3-Yr Early Repayment Charges
Maximum LTV - 55%

Background

The Mansfield Building Society was originally formed as the North Nottinghamshire Permanent Benefit Building Society in 1870. The Mansfield continue to serve its members and community as an independent, mutual building society. The Society headquarters are still based in Mansfield, thus retaining its heritage and has now grown to achieve assets exceeding £400m.

They aim to provide a friendly service to customers with savings and helping to buy their home. Their transparent range of mortgage solutions include a focus on family lending with its first time buyer and Family Assist mortgage range. The Mansfield Building Society also provide later life lending solutions to customers wishing to take a mortgage upto age 85 via its residential mortgage range, and latterly into Retirement Interest Only Mortgages (RIO's).

Eligibility

The Mansfield 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.

Mansfield Building Society have a sensible approach to lending in retirement whereby on joint applications they will assess each applicant individually in order they could sustain the mortgage solely throughout the term, should their partner pre-decease them.

The Mansfield 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 £250,000. For mortgage applications above £250,000 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, with each loan being individually underwritten to establish eligibility.

Eligible income for homeowners acceptable to Mansfield is mainly pension income, however consideration may go to investment and rental income. Standard income verification is required if the borrower(s) is still in employment or self-employment plus evidence of stable retirement income e.g. pension or self-employment income.

Independent legal advice will be required for the borrower(s) and the solicitor/borrower(s) will need to ensure that two Lasting Powers of Attorney will be in place - Health and Welfare, and secondly for Financial Affairs

RIO mortgage advice must be provided by a CeRER or CertER Equity Release Qualified adviser.

Mansfield's minimum property valuation on their retirement mortgage is £50,000 and the property must be the homeowner's main residence and must be located within England and Wales. Please contact the Equity Release Supermarket team on 0800 802 1051 to check for eligibility.

Features

This Mansfield RIO Mortgage provides an initial tax-free lump sum cash release for immediate use, with the ability to make monthly repayments of only interest to the Mansfield.

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 either. The loan is an interest-only lifetime mortgage with no end date set and is repaid usually upon sale of the property.

The maximum loan-to-value (LTV) on this interest-only mortgage is dependent upon the age of the borrower at time of application. For homeowners applying upto age 65, the maximum loan-to-value is just 40%, whilst 65 & over it rises to 55% of the property value.

This is a residential mortgage which means that there are no safeguards if something unexpected arises which prevents the homeowner being able to continue making payments. So, to make use of this product, homeowners must be confident that their income will stay sufficient and 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 on this RIO mortgage.

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, with payments still being mandatory.

The Mansfield 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) are fixed on this Mansfield RIO Mortgage charges for the length of the fixed rate term offer (e.g. 3 years).

Options

This Mansfield Retirement Interest Only 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.

A drawdown option is permitted by the Mansfield upto the maximum loan-to-value available to the borrower at the point of application, subject to a satisfactory affordability assessment on each withdrawal. These minimum subsequent drawdowns are from £10,000.

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

The mortgage can also be transferred to a new home as long as there is adequate security for the mortgage.

The Mansfield 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..

Practicalities

The Mansfield RIO 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 Mansfield RIO mortgage is ideally suited for those looking for an interest-only mortgage, have considered, but decided not to downsize at this stage and thus remain at 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.

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

Another concept for these RIO mortgages is they offer 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 3-year fixed rate interest-only mortgage deal

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

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Mansfield Building Society RIO Mortgage Rates & Details