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Last updated 26 May 2022.
55 – for joint applicants, both need to be over the age of 55.
As repayment of a RIO mortgage is triggered by a life event, unless indicated, the Society will assume a term in line with the guidelines below. If the mortgage term is reached, the Society will arrange for it to be extended.
Maximum Number of Applicants
£17,500 per application (the mortgage needs to be affordable by both applicants)
Maximum Mortgage Term Guidelines
Maximum Mortgage Term Guidelines
Age* Term 55 40 56 39 57 38 58 38 59 37 60 36 61 35 62 34 63 33 64 32 65 31 66 30 67 29 68 28 69 28 70 27 71 26 72 25 73 24 Age* Term 74 24 75 23 76 22 77 21 78 21 79 20 80 19 81 19 82 18 83 17 84 17 85 16 86 16 87 15 88 15 89 15 90 14
*Age of oldest borrower.
Subject to minimum product term and maximum term of 40 years.
Source: Based on 2018 ONS Cohort Life Expectancy Tables based on expectation of life, 1981-2064 principal projection, England and Wales. Guidelines subject to review in December each year based on the age attained in the bi-annual update of Cohort Life Expectancy Tables.
CCJs & Defaults
CCJs/Defaults within the last 3 years are not acceptable.
CCJs/Defaults => 3 years prior to application are acceptable up to a maximum £2,500 – subject to an explanation and being cleared/satisfied 12 months prior to application.
No other adverse entries must show on credit file.
Mortgage, loan, HP arrears and missed payments => 3 years prior to application: Status 1s and 2s are accepted – status 3 or above not accepted.
Mortgage, loan, HP arrears and missed payments within the last 3 years are not acceptable.
Credit Card, mail order, utility commitments => 3 years prior to application: Up to and including status 2s are acceptable.
Credit Card, mail order, utility commitments <3 years prior to application: Status 2 – OK to proceed subject to the commitment being up to date for a minimum of 12 months prior to application. =< Status 3 are OK subject to commitments totalling less than £500 and being up to date for a minimum of 12 months prior to application.
For non-UK nationals we require the applicant(s) to have resided in the UK for a minimum of 2 years. We will also require proof of indefinite leave to remain/residence certificate or settled or pre-settled status in the UK.
Applicants’ own deposit or gift from an immediate family member (spouse, parent, grandparent, sibling, child or grandchild) is acceptable. Evidence of the source of deposit is required.
100% state and/or private pension income. We will accept 5% of SIPP/pension pot for income assessment as an annual notional figure.
Income from property and investments acceptable if evidenced by SA302s and SA100s.
100% of disability living allowance and personal independence payment (must have been in receipt for last 2 years).
100% industrial injuries benefit.
Please note: Where rental income is needed to support the mortgage, you must submit an Agreement in Principle to the Society. An element of property income can be used but the amount considered is linked to income and the debt outstanding on the investment properties.
With a RIO mortgage, the borrower is required to pay the interest payments each month and the amount which can be borrowed will be based on their ability to maintain these payments throughout the life of the mortgage.
The capital will be repaid through sale of the property on the occurrence of the earlier of the following life events:
• Leaving the property with no reasonable prospect of returning (e.g. moving into residential care, sheltered accommodation or living with family long-term)
• Acquiring another property for use as the main residence
• Selling the property without transferring the loan to the new property
Where there are joint borrowers, the life event is triggered by the surviving borrower.
We will consider remortgage applications where the applicant has been the registered owner for the past 6 months. Refer if less than 6 months.
Interest Only Repayment Vehicle
Sale of property.
Minimum Property Value
England and Wales.
The property must be the main residence of the applicant(s).
Properties must be of traditional construction.
Timber framed properties may be considered if brick clad.
New build houses subject to NHBC/Local Authority Building Control Scheme/Premier/Checkmate (Castle 10)/Buildzone/Zurich/ICW (International Construction Warranties)/AHCI Ltd or Professional Consultants Certificates.
Purpose built flats/maisonettes are acceptable (new builds not acceptable). Must be leasehold.
Flats/apartments more than 4 storeys. If above 4 storeys, they must be serviced by at least 1 lift. Flats above 6 storeys are not acceptable.
HMOs, self-builds, properties held in Trust, present or former hotels/guest houses/B&Bs, commercial properties (even if applicants intend to convert back to residential).
Studio flats and ex-local authority flats/maisonettes.
New build flats.
Flats above commercial property.
Any construction covered by Housing Defect Legislation such as high alumina cement, prefabricate reinforced concrete, large panel system, BISF.
Any property where an EWS1 form for wall cladding is required.
Reasons for Additional Borrowing
• Home improvements
• Gift to family member
• Purchase of an investment or second home
Please note, evidence would need to be submitted to satisfy the above.