Leeds Building Society RIO - Fixed 2 Year

Are You Considering the RIO – Fixed 2 Year Scheme? What are the Eligibility Requirements, Features, Interest Rates & Scheme Options? Discover If This Equity Release Plan Is For You.

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Leeds Building Society RIO - Fixed 2 Year Review

RIO – Fixed 2 Year Key Details

Type Rate APR
Leeds Building Society Fixed 2.59% 4.70%

Scheme Incentives

  • Free Valuation

Scheme Offers

  • 10% Yearly Capital Repayments
  • Interest-Only Mortgage
  • Maximum LTV – 55%
Leeds Building Society RIO - Fixed 2 Year

I think you’ll agree with me when I say:

It’s REALLY hard to choose the best equity release scheme with all the choices available.

Or is it?

Is the Leeds Building Society RIO - Fixed 2 Year, equity release scheme the best?

Don’t let your equity release dream become a nightmare!

Luckily, we’re here to guide you on the in’s and out’s of equity release, as you deserve only the best.

However, not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.

As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.

Could the Leeds Building Society RIO – Fixed 2 Year be the right equity release plan for you?
We’re here to help you:
Leeds Building Society is one of the leading equity release providers on the market and might just be the answer you’ve been looking for.
Can you truly go wrong with Leeds Building Society?
Let’s find out!

What's Equity Release & How Does It Work?

We've summed up the most important information about the topic in this quick video.

An equity release mortgage is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care. The homeowner’s family usually pays back the cash released, and the interest incurred, from the sale of the home in question.

Equity release is available for individuals or couples over 55, with the youngest homeowner’s age determining the amount of equity that can be released. It is important to note that some equity release schemes may require the homeowner to be 60 or older.

Learn More: What’s Equity Release & How Does It Work?

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Most popular reasons for releasing equity

Who Are Leeds Building Society?

A little bit about them.
Learn a bit more about them here.

Scheme Background

Leeds Building Society, the UK’s 5th largest building society, offers a range of mortgage products to cater for individual retirement or saving needs.

Originally formed as a mutual, Leeds Building Society has helped UK communities save & borrow since 1845. In 1875 it formally established as the Leeds and Holbeck (Permanent) Building Society, offering both deposit accounts and mortgages, and in 2005 changed its name to Leeds Building Society.

In 2018 Leeds Building Society was the 1st national high street lender to launch a range of Retirement Interest Only (RIO) mortgages.

Aimed at older homeowners, RIO mortgages are interest only mortgages with no set end date. Specifically designed to allow homeowners to use the sale of their home to repay their mortgage balance. This can either be upon death, or when the last surviving partner moves into care.

Unlike an equity release lifetime mortgage, interest roll-up is not permitted on the Leeds RIO mortgage.

The Homeowner will be required to make monthly mortgage payments for the life of the mortgage, which will consist only of interest on the amount borrowed.

Eligibility & Requirements

Leeds Building Society’s RIO mortgages are accessible to borrowers aged 55 to 80 at the time of application. Joint applications are permitted if both candidates fulfill the age and income requirements.

These mortgages can be used to acquire or refinance a borrower’s primary house. Capital raising is authorized for both property and non-property related reasons.

These mortgages are only accessible in the form of interest-only payments. The mortgage amount is often recovered through the sale of the mortgaged property, either upon death or when the last living spouse enters care.

The maximum loan-to-value (LTV) is 55% of the property worth, with a loan size of £1,250,000.

There is no requirement for a certain level of income. To evaluate the lifetime affordability of the interest-only payments, the Society will conduct a comprehensive study of income and spending.

There is no minimum equity requirement, and the minimum property valuation is £50,000. The property must be the primary residence of the homeowner and must be located in England, Scotland, Wales, or Northern Ireland.

Adverse credit, such as arrears, defaults, and CCJs, may be acceptable depending on the amount, duration, and degree of credit registered. To verify your eligibility, please call the Equity Release Supermarket team at 0800 802 1051.

Minimum Property Valuation

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Property Location Requirements

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Single vs Joint

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Minimum Release

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Scheme Features

These Retirement Interest Only mortgages offer a tax-free lump sum cash release that may be used right away. You will be expected to make monthly mortgage payments for the duration of the loan, which will only consist of interest on the amount borrowed.

It is important to highlight that, in contrast to an equity release lifetime mortgage, interest roll-up is not authorized. This also implies that, unlike equity release lifelong mortgages, Leeds RIO mortgages do not come with a no-negative-equity guarantee.

The ability to make monthly mortgage payments may be jeopardized if income falls, outgoings rise, or interest rates rise. This implies that if the homeowner fails to make payments on time, their home may be in jeopardy.

There is no maximum term or age limit for repaying the mortgage. It will endure as long as the last surviving homeowner and/or the last homeowner dwelling in the property.

There is no requirement for any type of payback strategy, such as endowment, investment, or repayment basis, because the loan will be returned with the profits of the property’s sale.

Tapered early repayment costs (ERCs) apply throughout the duration of the fixed product term, starting at 6% in this case of the 15-year fixed and reducing to 2% in the 15th year.

The homeowner is responsible for making all monthly interest payments as they become due until the RIO mortgage is paid off. If homeowners do not make their RIO payments on time, their homes may be in jeopardy.

If a single applicant dies, the mortgage must still be repaid, generally through the sale of the home. On joint applications, the mortgage will be continued in the survivor’s name.

Valuation Features

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Early Repayment Feature

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Equity Release Council Status

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Joint Application Features

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Scheme Options

In addition to the monthly interest-only payment, Leeds Building Society will allow an additional 10% capital payback without penalty each year.

The mortgage is transferable and can be transferred to a different property if certain conditions are met.

Within the Leeds RIO mortgage product range, there is typically an option of fixed rates. They are, however, subject to change, so call the Equity Release Supermarket team on Freephone 0800 802 1051 for the most up-to-date interest rates.

Unless another product is selected before or at the conclusion of the fixed rate term, the mortgage will revert to the lender’s standard variable rate (SVR).

Please call the Equity Release Supermarket team on Freephone – 0800 802 1051 today for more information or to obtain an estimate on the Society’s RIO mortgage.

Repayment Options

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Inheritance Protection

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Application Fees

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Cashback Options

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Footnotes

Leeds RIO Mortgage plan updates are still in the works. We will give an update soon.

Editor’s Rating: 4.85

Leeds Building Society's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by Leeds Building Society.

Not what you're looking for?

Have a look at all the equity release schemes available on the market, with our easy to use table!

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

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HOW MUCH EQUITY CAN YOU RELEASE?

Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.

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John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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