Newbury RIO Mortgage

Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui

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

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Newbury RIO Mortgage Review

RIO Mortgage Key Details

Type Rate APR
Newbury Discounted 2.95% 3.7%

Scheme Incentives

  • Free Valuation
  • Free Application

Scheme Offers

  • Interest-Only Mortgage
  • 3-Yr Early Repayment Charges
  • 20% Overpayments Allowed

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 Newbury RIO Mortgage, equity release scheme the best?

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

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

However, it’s important to remember that 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 Newbury RIO Mortgage be the right equity release plan for you?
We’re here to help you:
Newbury 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 Newbury?

Let’s find out!

Who Are Newbury?

Newbury Building Society is a building society based in Newbury, Berkshire in the south of England. ‘The Newbury’ (as it is affectionately known) was established in 1856 and is one of the oldest surviving building societies in the United Kingdom. It provides mortgages and savings products from its branches in Newbury, Hungerford, Thatcham, Abingdon, Didcot, Wokingham, Andover, Alton, Basingstoke and its newest branch opened in early 2013 in Winchester. Assets at 31 October 2020 were £1.234bn. Like all United Kingdom building societies, it is a mutual organisation owned by its current members. It is a member of the Building Societies Association.
Learn more about the various Newbury Building Society equity release schemes.
Newbury RIO Mortgage

Scheme Background

Join the mortgage and savings community of Newbury Building Society. Owned by its’ members, this independent mutual has created long-term value and has recorded over £1 billion in assets.

Since 1856, Newbury has served its’ community in providing mortgages and savings. It was originally established under the name of The Newbury Permanent Benefit Building and Investment Society.

Today Newbury continues to focus on the individual needs of their customers providing residential mortgages to a wide range of applicant ages. A key focus is their Later Life Residential mortgages that is open to accepting applications from homeowners up to 90yrs old.

Later Life Residential mortgages can either be arranged on capital and repayment basis only, but must come with a fixed end date. They are available to older homeowners, up to 90yrs, who have the means to meet monthly payments over a fixed term and repay the mortgage using a suitable repayment strategy.

The rationale, of being open to those with the capacity to repay a mortgage, has also led to Newbury launching their Retirement Interest Only Mortgage (RIO).

Eligibility & Requirements

The RIO mortgage from Newbury Building Society is accessible to borrowers over the age of 60. 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.

The RIO mortgage from Newbury is only offered as an interest-only loan. The mortgage amount is often recovered through the sale of the mortgaged property, either upon death or when the last living spouse enters care.

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 £125,000. The property must be the primary residence of the homeowner and must be located in England or Wales.

Depending on the quantity, length, and degree of credit registered, Newbury Building Society may accept unfavorable credit such as arrears, defaults, and CCJs. To verify your eligibility, please call the team.

Scheme Features

These Newbury Retirement Interest Only mortgages offer a tax-free lump sum cash release that is available for immediate usage. 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.

The maximum loan-to-value (LTV) is 50% of the property’s worth, with a minimum loan of 50,000 and a maximum loan amount of £500,000.

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, the Newbury RIO mortgage does not meet the Equity Release Council’s No Negative Equity Guarantee.

The capacity 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 for just three years of the reduced product’s five-year term. These are 3% in year one, 2% in year two, and 1% in year three.

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, and payments must be made in order for the mortgage to be kept.

Scheme Options

In addition to the monthly interest-only payment, the Newbury Building Society will allow an additional 20% capital payback without penalty each year.

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

Within its product line, the Newbury typically offers a selection of reduced and fixed rates. They are, however, subject to change, so call the team for the most up-to-date interest rates.

Unless another product is selected before or at the conclusion of the discounted interest rate term, the mortgage will return to Newbury’s standard variable rate (SVR).

Editor’s Rating: 4.85

Newbury's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by Newbury.

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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.

rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
John Lawson

Written by
John Lawson
Founder SovereignBoss

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.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
kath icon

Katherine Read
Consumer Affairs Writer

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.

Nicola Date
Writer & Journalist

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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