Ipswich Building Society extends RIO range

Ryan Bembridge

February 14, 2019

Ipswich Building Society has three retirement interest-only mortgages for over 55s to a maximum loan-to-value of 50%.

There is a 2-year discount at 2.74%, a 2-year fix at 3.25% and a 3-year fix at 3.35%, all with a £199 application fee, £500 completion fee and £35 CHAPS fee.

Richard Norrington, chief executive of Ipswich Building Society, said: “This enhancement to our existing later life mortgage range will provide additional options for borrowers aged 55 and over seeking a mortgage.

“With no upper age limit and no specified term, RIO borrowers can remain in their home without the burden of worrying about repaying the capital until a significant life event such as a move into long-term care or death of the last remaining borrower, if a joint mortgage is held.

“However, RIO mortgages also serve other purposes such as allowing older borrowers who can afford the monthly interest payments to free up capital to pass on to children or grandchildren, without the need to downsize.

“Similarly, RIO mortgages can also be used for home extensions or property changes such as converting a house for downstairs living, which may allow an older borrower to remain independent in their own home for longer.”

The mortgages are available in England and Wales and have a maximum loan size of £500,000. Properties must have a minimum equity of £150,000.

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