Retirement Interest Only Mortgage Calculator (Dec 2021)

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Retirement Interest Only (RIO) Mortgage Calculator

If you don’t explore all your options, you could miss out on the perfect retirement financial solution to suit your needs.

An RIO is one to consider.

So, your best bet is to use our calculator and see how much equity you could unlock with this fantastic product.

We’ll help you discover:

• How to use a retirement interest-only mortgage calculator.
• How retirement interest-only mortgages work.
• The pros and cons of RIOs.

At SovereignBoss, we’re proud of bringing the latest news in the retirement mortgage industry, including our accurate RIO mortgage calculator for Dec 2021. Find out more right now!

How to Use the Retirement Interest-Only Mortgage Calculator

 

Our retirement interest-only mortgage calculator takes just 8 seconds to use. All you need to do is provide the value of your property and fill in your details. Your quote will then be sent to your email.

The process is that simple.

The calculator will provide you with the maximum amount of equity that you could be eligible to unlock.

How Do Retirement Interest-Only Mortgages Work?

 

A retirement interest-only mortgage works by the homeowner borrowing cash in exchange for monthly repayments until you pass away or move into long-term care. They are similar to interest-only lifetime mortgages. What’s left is repaid when you pass away or move into long-term care. 

Discover more: What’s a Retirement Interest-Only Mortgage & How Does It Work?

Who Can Get a Retirement Interest-Only Mortgage?

 

To qualify for a retirement interest-only mortgage, you’ll generally need to be 55 or older. However, some lenders’ rules differ, and others may have an age limit. If you’ve got a secure retirement income source, but need additional equity, then an RIO might be ideal for you. Interest rates are lower than with other retirement mortgage options.

 

How Are RIO Mortgages Different From Lifetime Mortgages?

 

RIOs and lifetime mortgages are different in that with a lifetime, you’re under no obligation to make any repayments, but you can risk foreclosure if you don’t cover monthly payments on an RIO. 

Learn more: What’s an Interest-Only Lifetime Mortgage?

What are the Pros & Cons of Retirement Interest-Only Mortgages in Dec 2021?

 

The biggest pro of a retirement interest-only mortgage is that you’ll leave a larger inheritance as you pay off the interest. The biggest con of an RIO is that you can risk foreclosure if you can no longer afford the monthly interest payments.

Wondering what the 8 pros and cons of retirement interest-only mortgages are? Look no further:

4 Benefits of RIO’s

  • Interest rates are low.
  • You can avoid downsizing.³
  • You’ll have income for a financially stress-free retirement.
  • You’ll leave larger inheritance than you would with other retirement mortgage products

4 Disadvantages of RIO’s

  • You’ll need to go through an affordability check.
  • You’ll have to commit to monthly interest repayments for the rest of your life.
  • The amount you can borrow is based on your earnings, which may be limited in your retirement.
  • You can risk repossession if you’re unable to keep up with the monthly interest repayments.

The best thing you can do is weigh out these pros and cons with an independent financial adviser who’ll guide you towards the best retirement solution for you and your family.

Can You Switch to a Retirement Interest-Only Mortgage?

You can switch your retirement interest-only mortgage plan. However, you will need to go through a new affordability check. Therefore, if you have less money than with your previous application, you might end up getting a worse deal. 

How Will a Retirement Interest-Only Mortgage Lender Calculate the Amount I Can Borrow?

Your retirement interest-only lifetime mortgage lender will consider your age, the value of your estate, the condition of your property, and affordability checks, to determine how much equity you can borrow. 

Why Might I Need a Mortgage When I’m Older?

You might need a retirement interest-only when you are older to supplement pension income, assist family members in purchasing a home, or remortgage away from your existing mortgage.

Interesting Read: 15 Most Common Equity Release Uses in Dec 2021

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Got Questions? Check These First

How Much Can You Borrow with the RIO Mortgage Calculator?

How Do You Use the RIO Mortgage Calculator?

In Conclusion

Retirement interest-only mortgages are one of the most competitive later-life lending options if you have the means to pay off the interest. Therefore, it’s worth trying out our RIO calculator to see how much equity could be tied to your property in Dec 2021.

Once you have your estimate sent via email, you should get in touch with a whole-market financial adviser to discuss all your options.

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.

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

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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.
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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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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.
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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.
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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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Equity Release Calculator

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