Over 50’s borrowers and those approaching retirement don’t always want to go straight to equity release, they’re often looking for flexibility through interest only, capital & interest or part and part options with the ability to make monthly payments, and this is where RIO (Retirement Interest Only) comes into its own and bridges the gap.
Over the last year we’ve seen some clear changes in what people are using their mortgage proceeds for. As people spend more time at home, it makes sense that they are looking at ways to improve their surroundings and create comfortable environments to spend the moments that matter. Equally, a lot of people who are now considering working from home longer-term are looking to invest in a good home office space.
The increase in the number of people wanting to gift funds to family has also seen a significant rise, which seems to be a result of the pandemic – maybe absence and the lack of seeing our family, makes the heart more generous as well as fonder?
It’s so encouraging for us to see that the RIO is doing what it is designed for, providing options. It allows customers the benefit of using the value in their property to fund further home improvements, as well as financially helping their loved ones.
We’re here to help go through your life story, and if we have a ream of expert lenders on hand who will talk things through with us to ensure we get the right mortgage for you. All you need to do is get in touch.
A final thought; whilst not for everyone, Retirement Interest Only continues to be a flexible and useful option for the right customer, in the right circumstances. It’s far better to have many different mortgage options in later life, than not having them available as an option at all.