What is a RIO Lifetime Mortgage and How Does it Help Your Retirement?

Looking for Some Regular Extra Income in Retirement?

Retired couple with income picturePerhaps you’ve retired, have a small pension but would like the odd weekend away, treat
the grandkids or just have some spare cash each month rather than be continuously
stretched as the cost of living increases.

If you own your own home and are over 55 an ‘Income Lifetime Mortgage’ might be the
answer. A Lifetime Mortgage is a loan that’s secured against your house, it’s a type of Equity
Release product. There are several options, the Income Lifetime Mortgage gives you regular
monthly income over 10, 15, 20 or 25 years.

Could Using a Retirement Interest Only (RIO) Lifetime Mortgage be the Answer?


  • Get a monthly income for a fixed term paid every month into your nominated bank
  • Get an initial lump sum of £2,500 minimum
  • Interest Rates are fixed for life
  • No repayments are required

Important Considerations:

Before deciding to take out a lifetime mortgage, get professional independent advice from a
qualified adviser can talk you through the benefits and risks. You advisor will point out other
options available to you. Feel free to contact us at www.equityreleasescotland.org to look a
free consultation or to request one of our Free brochures.

In the meantime, here are a few things to think about.

  • Once the fixed income term comes to an end, the monthly income will stop, but interest will
    continue to roll up until the lifetime mortgage is repaid.
  • A lifetime mortgage will reduce an inheritance. You can take Inheritance Protection to
    protect a proportion of the value of your home. However, this will reduce the amount you
    can borrow.
  • There may be cheaper ways to borrow money.
  • Taking an income may affect any means-tested benefits you receive.
  • There is a No Negative Equity Guarantee which means your beneficiaries will never have to
    pay back more than the amount your property is sold for.
  • The loan is repaid when the last borrower dies or moves out of the home into long-term

Do I Qualify?

Can you answer “yes” to the following questions?:

  1. Are you aged 55 or over?
  2. Are you living in (or buying) your own home with either a small or no mortgage?
  3. Is your property made of standard construction, in a good state of repair, free of any
    tenancy restrictions, and is it in mainland Scotland England, or Wales?
  4. Is your home valued at £100,000 or over (£150,000 for ex-council, ex-housing association or
    ex-Ministry of Defence properties)?

If the answer is “yes” to the above questions then you may be able to qualify for the RIO Lifetime Mortgage. If you wish to find out more or are thinking about Equity Release in general and just want to discuss your options, please get in touch with us either on our contact us page, email us (equityreleasesco@gmail.com) or call us (0333 360 1958).

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