If you have a case in mind, but want to find out more, we’ve answered some frequently asked questions about our RIO mortgages below.
Last updated 20 December 2022.
An alternative to equity release, our Retirement Interest Only (RIO) mortgages are designed to support your later life clients aged 55 and over and may be the best approach if they’re looking to release funds from their property, with no plans to downsize.
As the name suggests, our RIO mortgages are available on an interest only basis, so your client will need to be able to afford the monthly interest payments throughout the mortgage term. However, they will not pay back the loan itself until a life event occurs, for example, going into long-term care or passing away.
We accept state, private and some foreign currency pensions. We can also accept income from property and investments, providing they’re evidenced by SA302s or SA100s.
5% of SIPPs or investment portfolios that aren’t currently being drawn on are also accepted, we’ll just require a portfolio valuation no more than 30 days old at application. Please note, where rental income is needed to support the mortgage, you must submit an Agreement in Principle.
An element of property income can be used but the amount considered is linked to income and the debt outstanding on the investment properties.
Unlike our Older Borrower mortgage, our RIO mortgages have no end date and the repayment vehicle will always be the sale of property.
Helping to protect the remaining equity in your client’s property, the loan will have no interest roll-up which means the amount repayable when the life event occurs will be the cost of the original loan. This is because the interest is paid off monthly by your client.
RIO mortgages are only available on an interest only basis and your client will not pay back the loan itself until a life event occurs, for example, going into long-term care or passing away; this means they could be suitable for those who wish to avoid downsizing and instead remain in their home.
If your client is aged 55 to 85 and they’re looking to repay the value of their loan with regular monthly payments instead, our Older Borrower mortgage may be more suitable, which will allow your client to use downsizing as a repayment vehicle.
If you’d like to submit an Agreement in Principle and application on behalf of your client, we’ve covered the steps on our Apply page, so you know what to expect.
You can find our range of available products on our product portfolio, available to download on our Retirement Interest Only product page.
We’ll lend up to 55% LTV (or up to £750,000) of the market price to those looking to purchase or remortgage their property on an interest only basis. We require a minimum loan size of £30,000.
For further product details, please visit our Retirement Interest Only product page.
A minimum 45% of the market value must be available as a deposit. The deposit can be the applicants’ own or gifted from an immediate family member (spouse, parent, grandparent, sibling, child or grandchild). Evidence of the source of deposit is required.
The minimum property value is £150,000 or product dependent.
Yes, remortgaging and additional borrowing is available. A list of acceptable reasons for additional borrowing can be found on our Retirement Interest Only criteria page.
The minimum age for a RIO mortgage is 55. Details regarding our maximum mortgage term guidelines can be found on our Retirement Interest Only criteria page.
You can download a copy of our documentation checklist from our Downloads page which lists all the requirements for RIO mortgage applications.
Yes, if you’d like to check your client’s affordability for a RIO mortgage, please use our Residential calculator which can be downloaded on our Affordability calculators page.
Yes, you can submit an application using Intermediary Online.
You’ll need to register to use the platform, but you’ll be able to create and edit applications, upload documentation and receive notifications at each stage of the process.
Yes, you can download our mortgage application forms on our Downloads page; however, if possible we would prefer you to submit your application online.
We can accept applications and supporting documents via email in the first instance at firstname.lastname@example.org but the original application form will need to be posted to our Principal Office address; Marsden Building Society, Principal Office, 6-20 Russell Street, Nelson, Lancashire BB9 7NJ.
No, there is no need to pre-register if you’re applying via paper application, we will use the information provided when you submit your first application with us.
If you want to submit your application online, you will need to register for our Intermediary Online service.
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