Freephone 0800 678 5955
Freephone 0800 678 5955

Marsden Retirement Mortgage RIO Mortgage Rates & Details

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RIO Mortgage

  • Type Fixed
  • Rate 3.49%
  • APR 5.80%
Incentives:
  • Free Valuation
  • Legal Fees Contribution
Offers:
  • Free Remortgage Legals Package*
  • Fixed Interest Rates
  • Interest-Only Mortgage

Background

The Marsden Building Society shares a mutual status with its members for whom it has been providing savings & mortgages since 1860. All branches are based in the north-west and aim to follow the Marsden's philosophy of providing a personal and conversational approach to providing its financial services.

The Marsden provides a range of mortgage products, with a specialist 'lending to retired' mortgage products. Marsden do not consider lending to retirees an issue if they are in receipt of pension income, allowing elderly homeowners availability to Retirement Interest Only Mortgages (RIO’s) on their property.

Eligibility

The Marsden 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.

Marsden 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 Marsden 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 £30,000 with a maximum of loan upto £750,000. For mortgage applications above £750,000 please call the Equity Release Supermarket team on Freephone 0800 678 5955 to check qualification and request your bespoke quotation.

The minimum acceptable level of income is £17,500 which can be based on either single or joint applications.

Eligible income for homeowners that’s acceptable to Marsden Building Society is mainly pension income, however consideration will go to investment and rental income where they can be evidenced by annual statements and/or SA302's.

Marsden's minimum property valuation on their retirement mortgage is £150,000 and the property must be the homeowner's main residence and should be situated within England and Wales only.

Adverse credit such as arrears, defaults and CCJ’s are acceptable, dependent upon the amount, longevity and level of credit registered. Please contact the Equity Release Supermarket team on 0800 678 5955 to check for eligibility.

Features

This Marsden 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 Marsden.

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 50% 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.

Marsden 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 Marsden RIO Mortgage are always fixed for the length of the specific fixed or variable term offer (e.g. 3 years).

All Marsden RIO mortgage products come with a free valuation upto £500,000 and a fee assisted remortgage package including free legals.

Options

This Marsden 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.

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

Additional borrowing may be available with the Marsden 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 can also be transferred to a new home as long as there is adequate security for the mortgage.

The Marsden 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 678 5955 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 Marsden RIO Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955 today.

Practicalities

The Marsden 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 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 Marsden RIO mortgage can provide an excellent solution.

Another concept for these RIO mortgages is that Marsden 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.

*applies to solicitors fees & standard disbursements if using Marsden Building Society solicitors
** the rate quoted above is a 3-year fixed rate interest-only mortgage deal to 28.02.2022

To obtain further information or to request a quotation on the Marsden RIO Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 678 5955.

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