Penrith Building Society RIO Mortgage

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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Penrith Building Society RIO Mortgage Review

RIO Mortgage Key Details

Type Rate APR
Penrith Building Society Discounted 3.25% 4.60%

Scheme Incentives

  • Free Valuation
  • Free Application
  • Legal Fees Contribution

Scheme Offers

  • Interest-Only Mortgage
  • 2-Yr Early Repayment Charges
  • Maximum LTV – 50%
Penrith Building Society RIO Mortgage

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 Penrith Building Society 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 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 Penrith Building Society RIO Mortgage be the right equity release plan for you?
We’re here to help you:
Penrith 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 Penrith 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 Penrith Building Society?

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

Scheme Background

Penrith Building Society has helped generations of savers and borrowers through their financial services needs since 1877. Operating nationwide, Penrith now also offers a range of Retirement Interest Only Mortgages (RIO’s) designed for the 55+ age group.

Penrith Building Society’s ethos – to provide fair, straightforward services to their members – has stood the test of time and after 140 years their reputation, that people can have the utmost trust and confidence in them, still remains.

Eligibility & Requirements

The Penrith Retirement Interest Only Mortgage (RIO) is intended exclusively for homeowners over the age of 55 who need access to the equity in their house to improve their retirement lifestyle. There is no upper limit on how old you can be.

This RIO mortgage could be used to remortgage or to help with the purchase of a home. To guarantee that a RIO mortgage does not effect any means-tested benefits, Penrith recommends that borrowers wanting to capital raise seek counsel from a taxes and benefits specialist.

Penrith Building Society takes a reasonable approach to lending in retirement, assessing each applicant individually on combined applications to ensure that they can sustain the mortgage on their own if their partner dies before the end of the term.

In the event that any partner to the mortgage dies during the mortgage term, all borrowers must meet the Society’s affordability requirements and be able to clearly demonstrate continuous loan affordability on a stressed basis. Personal pensions, state pensions, investment income, and rental income are all eligible sources of income.

The Society has no special limits on who can live in the property; nonetheless, ordinary conditions apply. Occupants over the age of 17 must declare themselves at the time of application and sign an Occupiers Consent Form.

While the Society may set a term at the outset, repayment of the capital will not become due until one or more of the specific life events occur, and while the customer continues to live in the mortgaged property as their primary residence, no full or partial repayment of the capital is due or capable of becoming due.

These life events include the sole or surviving joint borrower’s death or the sole or surviving joint borrower’s admission to a long-term care facility, where the borrower will not be returning to the property.

As a condition of the mortgage, the borrower must obtain legal advice, and it is strongly advised that the borrower register a lasting power of attorney to reduce the risks associated with handling financial affairs in the case of cognitive loss.

Minimum Property Valuation

Penrith Building Life plan updates are still in the works. We will give an update soon.

Property Location Requirements

Penrith Building Life plan updates are still in the works. We will give an update soon.

Single vs Joint

Penrith Building Life plan updates are still in the works. We will give an update soon.

Minimum Release

Penrith Building Life plan updates are still in the works. We will give an update soon.

Scheme Features

This Penrith RIO Mortgage offers a tax-free lump sum cash release for immediate usage, as well as the option of making solely interest-only monthly repayments.

This RIO mortgage has a minimum loan of £75,000 and a maximum loan of £450,000. Please call the Equity Release Supermarket team on Freephone – 0800 802 1051 to check qualification and request your unique quotation for mortgage applications over £450,000.

The maximum purchase price is £500,000, and the house must be the homeowner’s primary residence in England and Wales. To see if you’re eligible, call the Equity Release Supermarket team at 0800 802 1051.

There is no maximum period; it will last as long as the last remaining homeowner lives. There is no requirement for any type of payback method, including endowment, investment, or repayment basis. The loan is an interest-only lifetime mortgage with no end date set and is repaid usually upon sale of the property.

This interest-only mortgage has a maximum loan-to-value (LTV) of 50% of the property value.

This is a type of residential mortgage in which there are no safeguards in place if anything unexpected occurs that prohibits the homeowner from continuing to make payments. In order to use this program, homeowners must be certain that their income will be substantial and consistent enough to meet their payment commitments.

Until the RIO mortgage is paid off, the homeowner must make all monthly interest payments as they become due. This means that if the homeowner does not keep up with their RIO mortgage payments, their home may be at risk.

If a single applicant dies before the period ends, the mortgage must still be repaid, usually through the sale of the home. On joint applications, the mortgage will be continued in the survivor’s name, with payments continuing to be required.

Because the Penrith Building Society isn’t a member of the Equity Release Council, their plans aren’t subject to the same code of behavior as other equity release schemes like the No Negative Equity Guarantee.

The early repayment charges (ERCs) on this discounted rate apply for the term of the first offer, which is two years.

Valuation Features

Penrith Building Life plan updates are still in the works. We will give an update soon.

Early Repayment Feature

Penrith Building Life plan updates are still in the works. We will give an update soon.

Equity Release Council Status

Penrith Building Life plan updates are still in the works. We will give an update soon.

Joint Application Features

Penrith Building Life plan updates are still in the works. We will give an update soon.

Scheme Options

This Penrith Retirement Interest Only Mortgage allows any homeowner to spend their tax-free cash as they see fit, but unlike roll-up equity release programs, they may also make monthly interest-only repayments to control the future balance.

Penrith BS will accept applications which are based on retirees house purchasing, remortgage business and on unencumbered properties and the mortgage can also be transferred to a new home as long as there is adequate security for the mortgage.

Within its product line, the Penrith RIO mortgage offers lower rates. Any of Penrith Building Society’s regular products are available to borrowers. They don’t have a RIO rate or product that is tailored to them. As a result, borrowers can take advantage of the features and incentives offered by that package. These offers are subject to change, so call the Equity Release Supermarket team on Freephone 0800 802 1051 to get the most up-to-date interest rates.

Unless another deal is picked before or at the expiration of a given agreement, it will revert to the lender’s usual variable rate.

Please call the Equity Release Supermarket team on 0800 802 1051 today for more information or to seek a quote on the Penrith RIO Mortgage.

Repayment Options

Penrith Building Life plan updates are still in the works. We will give an update soon.

Inheritance Protection

Penrith Building Life plan updates are still in the works. We will give an update soon.

Application Fees

Penrith Building Life plan updates are still in the works. We will give an update soon.

Cashback Options

Penrith Building Life plan updates are still in the works. We will give an update soon.

Footnotes

Penrith Building Life plan updates are still in the works. We will give an update soon.

Editor’s Rating: 4.85

Penrith Building Society's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by Penrith 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.

Use our free equity release calculator & see how much you can release today.

How Much Can You Release?

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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.
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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.
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Written by
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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.
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Written by
Katherine Read
Financial Planning Reporter

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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Written by
Nicola Date
Writer & Financial 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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