We use essential cookies to enable our website to function and non-essential cookies for marketing purposes. You can change your cookie settings here, otherwise we’ll assume you’re OK with the current settings.
As an independent advisory service, our mortgage advisers can search the whole market, including specialist lenders, giving you more options when it comes to later life borrowing.
Whether you’re looking for a standard mortgage or retirement interest only mortgages, our friendly expert mortgage advisers can help you choose the option that’s right for you.
Request a callback from a member of the team or use our later life mortgage finder to better understand what could be available to you.
At Key, we work with a number of later life mortgage* providers. Some of these include names such as Leeds Building Society, LiveMore, Marsden Building Society, Hodge, The Nottingham Building Society and Leek United Building Society.
If you’re looking at your options and aren’t sure if a RIO mortgage is right for you, here are some of the key advantages and disadvantages for you to consider.
Advantages
You’re able to release funds tied up in your home to pay off existing debt.
You may be able to pass on an early inheritance.
You won’t have to downsize to a smaller property.
Your mortgage can be repaid early (although there may be an early repayment charge).
Disadvantages
If you have an existing mortgage, that needs to be repaid first.
You’ll need to prove you can afford the interest repayments through affordability checks.
Your home will usually be sold off to repay the loan when you enter long-term care or pass away.
For RIO and retirement repayment mortgages, these products are available through Key Group and we charge an advice fee of 1.99% of the amount released, subject to a minimum of £1,499, usually payable when the mortgage completes.
Remember a mortgage is secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Although RIO mortgages share some similarities to equity release – they both allow you to access funds tied up in your property – they do have some key differences. With equity release, like any mortgage, you’re essentially borrowing a portion of your property’s value, but don’t necessarily need to make monthly repayments.
For both RIO's and equity release the loan is repaid once you move into long-term care or pass away, and the property is sold to cover this. With a lifetime mortgage, the most popular form of equity release, you don’t typically make repayments and your debt will grow over time and can have a negative impact on the value of your property, however you could opt to make interest repayments with an interest only lifetime mortgage.
Whether you’re considering a RIO or equity release, it’s important to get advice from a qualified expert. Get in touch with the team at Key today to discuss your options further.