Legal & General`s RIO is an interest-free mortgage for people aged 55 and over with a fixed interest rate for the duration of the mortgage. It can be used to replace an existing interest-free mortgage, pledge your home, or buy a new home. RIO allows homeowners to borrow up to 60% of the value of their home to help them achieve their goals, whether it`s improving their home and garden, providing for their children and grandchildren, or increasing their retirement income. A later life mortgage is a secured loan on the home for people over the age of 55. Our later life mortgages consist of lifetime mortgages and a mortgage only for retirement interest. Retirement has changed rapidly in recent years as people live and work much longer, and the coronavirus pandemic has forced many people to rethink their plans. More and more people need a range of different financial solutions to fund their needs throughout their retirement. The UK is known to be a nation of proud owners. Buying, renovating, renovating and selling real estate could just as easily be a national pastime. Nevertheless, there is one element of homeownership that we seem particularly reluctant to discuss: the use of a home in retirement savings.
The actual loan amount is determined by an affordability check up to a maximum of 60% of the value of your property. Based on your earned and/or retirement income (including remaining retirement income) of the lowest income. A RIO exists for those over 55 who are looking for an interest-free mortgage in retirement. This could be a new mortgage or replacing their current interest-free mortgage with a mortgage that allows them to continue paying interest for the rest of the time they live in their home. A RIO is a loan secured by your client`s home. If a customer purchases a RIO, they may be able to take out a larger mortgage at that time than they currently have, based on affordability tests. You can use it for articles like Legal & General, which today introduced a retirement interest-only (RIO) mortgage that offers even more options for those who want to use their home to make the most of their retirement. Learn more about our range of mortgages for life later or use our simple tool to find out which product best suits your needs. Life milestones are often accompanied by big financial decisions – from climbing the real estate ladder to setting the retirement age.
In the third season of our award-winning podcast Rewirement, host Angellica Bell meets inspiring guests who share her unique stories. She is also accompanied by financial experts who help her solve her financial dilemmas. You may have to pay for advice, but in return, you`ll receive a personalized recommendation to help you make the right choice for retirement. A retirement interest-only mortgage offers people the opportunity to access funds from home, while being confident that they can anticipate long-term costs and the impact on their income and wealth. Combined with our life mortgage offering, which includes options for people to pay monthly interest and use their equity to pay income, our retirement interest-only mortgage means we can provide our clients with the wide range of options they need. Life mortgages (a type of equity release) and retirement-only mortgages are sometimes referred to as « later life mortgages » or « later life life loans. » Although they are similar and often used for similar purposes, both loans are secured by the house. It`s important to understand the differences between products before deciding what might be right for you. If you want us to call you about our mortgages for later in life. Please enter your full name and phone number.
You may also provide your email address if you wish to opt out of receiving emails about our products and services. Details of how we process your data can be found in our Privacy Policy. Living on hold: Cost of living delays homeownership, children and retirement for millions across the country We offer a range of CPD-accredited events and workshops to help you understand the changing face of retirement. If your client wants to free up money from their home to increase their income in retirement, this could be an option for them.