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 with no maximum term as the mortgage does not need to be repaid until death, or you move into care and the property is sold.
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 Vernon RIO mortgage can provide an excellent solution.
Another concept for these RIO mortgages is that Vernon 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 0.5% discounted rate for 5 years no LPA in place.
To obtain further information, or to request a quotation on the Vernon Building Society Retirement Interest Only Mortgage, please contact the Equity Release Supermarket team on Freephone - 0800 678 5955.