Rosewood Financial Advisers
Looking To Plan Your Retirement?
Retirement Interest Only (RIO) in essence is an interest only mortgage but differs in a number of ways. There is a minimum age on application and there is no set term on application nor the need for a repayment strategy. As unlike regular interest only mortgages, this mortgage doesn’t have a fixed end date to repay the balance. It could be the right option for you if you want to look at keeping your repayments lower than a standard mortgage and you’re happy knowing that the mortgage will be repaid via sale of the property when the last surviving applicant moves into long term care or passes away.
Because you only pay off the interest on this type of mortgage your payments can be lower than a typical mortgage. So this can make it a very attractive and practical option for those looking for lifestyle change or retirement planning option. This would also be a viable option for those who wish to release some equity whilst protecting remaining equity and leave an inheritance for loved ones.
At Rosewood Wealth Management, we have a range of mortgages available for those approaching or in retirement. Get in touch so we can help guide you through all of the options available.
How we can help you
At Rosewood Wealth, we believe in providing all of our clients a truly individualised financial advice service. Whether you are just starting your journey and buying your first home, looking towards your first investment, saving for your future or looking to enjoy your wealth, we are here to help and guide you.
Frequently Asked Questions
How does a Retirement Interest Only Mortgage (RIO) work?
The Retirement Mortgage enables you to borrow money in retirement using the value of your home as security. This is an interest-only loan, you’ll have to pay the interest on the loan each month, and the amount you’ll be able to borrow will be based on your retirement income. The capital will be repaid from the sale of your home when you die or move permanently into long-term care.
Am I eligible for a Retirement Mortgage?
The amount you can borrow is determined by your ability to repay the interest, based on your income and expenses. You’ll need a reasonable level of retirement income in order to be eligible for the Retirement Mortgage.
When must the loan be repaid?
Your mortgage will be repaid when you or your surviving partner dies, or when you or your surviving partner goes into long-term care on medical grounds or because of specialist advice.
What is the difference between a Retirement Interest Only Mortgage and Equity Release?
Retirement interest-only mortgages share some similarities to equity release (Lifetime Mortgage), in that they both allow you to access the value held within your property.
However, with a Lifetime Mortgage you are not required to make monthly payments (although some products now allow you to this). The debt is repaid when you die or go into long term care. As you don’t make repayments over time your debt grows and can erode the value of your property.
This is not the case with a retirement mortgage. As you are paying the interest the outstanding balance will only every be that of the loan amount that you took when you set up the loan.
Hear what a few of our highly satisfied clients have to say
Donna has continued to provide me with excellent counsel and I value her opinion and knowledge of the financial world very highly. She has spent the time getting to know me so she can advise accordingly and I know that should my situation change I can always call on her.
Client In Lincolnshire
Rosewood Wealth is a breath of fresh air in the finance industry making total sense that’s easy to understand exactly what’s happening, thank you for your patience and understanding, a very professional company.
Donna came highly recommended for pension advice. Donna was able to combine both our pensions and offer informative information for us to be able to make a decision on our future.
Bev & Scott
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Rosewood Wealth Management Ltd
Registered in England and Wales Registered Company Number : 08291755. Registered address: 388 Brimington Road, Chesterfield, Derbyshire S41 0TF. Directors: Donna Robertson & Shannan Pool-Gorman
What to do if you have a complaint: If you have a complaint or dispute with us, you are entitled to make a complaint. We have a complaints procedure that is available on request. If you wish to register a complaint, please contact us either in writing, by telephone or email. If you wish to register a complaint, please contact us: In writing: Shannan Pool-Gorman, 388 Brimington Road, Chesterfield, S41 0TF. Email: email@example.com, or by telephone 01246 932300. Please be assured we treat complaints seriously. For your protection, if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (‘FOS’). Please see the following link for further details: http://financial-ombudsman.org.uk/.
A lifetime mortgage is secured against your home and is a complex product. To understand the features and risks, ask for a personalised illustration. Your home or property may be repossessed if you do not keep up the repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage. The value of your investment can go down as well as up and you may not get back the full amount invested. Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means-tested benefits. Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.
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