- Our Autumn newsletter 2023 is now available. You can download it here
- View our Christmas opening hours here. For information on bank transfer processing times over the Christmas period please click here.
Mortgage payment difficulties? We may be able to help. Find out more
Answers to some of the most frequently asked questions on Retirement Interest-Only mortgages
Here are our answers to the most common questions asked about the RIO mortgage:
With a RIO mortgage you pay the interest monthly, so at the end of the term what you owe is what you’ve borrowed. Our RIO mortgage is suitable for you if you’re over 55 and would like to stay in your home and avoid downsizing.
A lifetime mortgage does not usually require the interest to be paid off monthly instead, the interest is added onto the loan.
With a RIO mortgage the interest doesn’t roll up (the interest isn’t added to the loan), because you pay the interest to us each month. This means when one of the specified life events triggers the repayment of the mortgage, it will always be the same amount that you borrowed originally.
Your monthly payments will pay off the interest owed on the amount you borrowed. You will need to repay the amount you originally borrowed when you, or each of you if you are joint borrowers:
- Move out of the property to live somewhere else and it’s very unlikely you will move back. This might be the case if you go into long-term care
- Purchase or move into a new property which will be your main residence, or you no longer use the property as your main residence
- Sell the property
- Pass away, or if you are a joint borrowers, the last occupying borrower passes away.
Other than that our RIO mortgages require the same criteria as our other mortgages. You can see our normal owner occupier lending criteria here.
If we’re able to, we will let you know that if we don’t hear from you within a certain period, we will speak with your registered contact.
If you have a RIO mortgage with someone else, each of you must have a registered contact, and this is required for the life of the mortgage. Each of you can have the same person as their registered contact, but you can’t nominate each other for your registered contact.
The registered contact isn’t responsible for any obligations in respect of the mortgage. We will only give them information about your mortgage if we can’t contact you. They won’t be able to transact or make any changes to your mortgage.
We explain the registered contact's responsibilities in detail in our RIO registered contact declaration document which will be given to you by your mortgage adviser or intermediary/broker.
To make the change we will need to know your new registered contact’s details at the same time we remove your previous registered contact. Your registered contact should be replaced with a new registered contact at the point of the removal.
Please read our RIO registered contact declaration document for full details. This can be found in the pack provided to you by your mortgage adviser or intermediary/broker.
If after exploring your options none are suitable for your circumstances, you will need to sell your home and use the money from the sale of the house to repay the mortgage. If you are either unable or unwilling to sell your home we will be entitled to issue repossession proceedings.
The terms of the RIO are transferred as part of this. You would need to get advice before doing this, either from our in-house advice team or an intermediary/broker of your choice.
Our RIO mortgage is available for purchase and remortgage.