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 Scheme Review

RIO Mortgage Key Details

Type Rate APR
Penrith Building Society Discounted 2.59% 4.5%

Scheme Incentives

  • Free Valuation
  • Legal Fees Contribution

Scheme Offers

  • Interest-Only Mortgage
  • 2-Yr Early Repayment Charges
  • Maximum LTV – 50%

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 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 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!

Who Are Penrith Building Society?

Penrith Building Society is a UK building society based in Penrith, Cumbria. It is a member of the Building Societies Association.
Penrith Building Society RIO Mortgage

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.

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 to the Penrith.

This RIO mortgage has a minimum loan of £30,000 and a maximum amount of £750,000. Please call the team on Freephone – 0800 802 1051 to assess qualification and receive your customised quotation for mortgage applications over £750,000.

The home must be the homeowner’s primary residence and must be in England or Wales. To see if you’re eligible, call the team.

There is no maximum period – it will last as long as the last remaining homeowner lives – and no payback strategy is required, such as endowment, investment, or repayment basis. The loan is an interest-only, lifetime mortgage with no defined end date that is normally repaid when the property is sold.

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.

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 based on retirees purchasing homes, remortgaging business, and unencumbered properties, and the mortgage can also be transferred to a new home as long as the mortgage is secure.

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 team 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 team on 0800 802 1051 today for more information or to seek a quote on the Penrith RIO Mortgage.

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.

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Editorial Note: This content has been independently collected by the SovereignBoss 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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