Retirement Interest Only (RIO) FAQs
If you have a client looking for a RIO mortgage, but want to find out more, we’ve answered some frequently asked questions below. You can find out more about our range of products on our RIO product page or about our criteria requirements for this range on our RIO criteria page.
Can I submit intermediary mortgage applications online?
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.
Can I download intermediary application forms?
Yes, you can download a mortgage application form on our Downloads page. 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, BB9 7NJ.
Do I need to register to submit an intermediary mortgage application?
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.
How do you stress affordability for your RIO products?
Each borrower will need to demonstrate that the interest only repayments are affordable to them throughout the term of the loan. In demonstrating affordability we can take into consideration any pension that will be payable to a surviving spouse if this can be evidenced. We have an Older Borrower Affordability Calculator that you can use to see if your client could be accepted for a RIO mortgage.
Is RIO a form of equity release?
No, a RIO mortgage is not classed as equity release. Unlike equity release, the interest on a RIO mortgage cannot be rolled up so your client will need to make interest only payments throughout the term of the loan.
What’s the difference between a RIO and an Older Borrower mortgage?
A RIO mortgage is only available on interest only. If your customer is looking to repay capital through monthly repayments this mortgage is not suitable for them. Unlike an Older Borrower mortgage, a RIO mortgage does not have an end date and the mortgage only becomes repayable on the occurrence of a life event such as moving house, moving into care or a borrower dying. It is also important to note that each borrower must be able to demonstrate the mortgage is affordable to them throughout the term of the loan.
Who is a RIO mortgage best for?
RIO mortgages could be suitable for your borrowers who are 55 or above and are looking for an interest only mortgage solution that allows them to remain in their home.