Scottish 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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Scottish Building Society RIO Mortgage Scheme Review

RIO Mortgage Key Details

Type Rate APR
Scottish Building Society Discounted 2.44% 4.6%

Scheme Incentives

  • Free Valuation
  • Legal Fees Contribution

Scheme Offers

  • £150 Contribution Towards Legal Fees*
  • 3-Year 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 Scottish 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 Scottish Building Society RIO Mortgage be the right equity release plan for you?
We’re here to help you:
Scottish 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 Scottish Building Society?

Let’s find out!

Who Are Scottish Building Society?

The Scottish Building Society is a building society based in Edinburgh, Scotland. It is the oldest building society in the world, the only independent building society based in Scotland and the 25th largest in the United Kingdom based on total assets of £431.4 million at 31 January 2020. It is a member of the Building Societies Association.
Learn more about the various Scottish Building Society equity release schemes.
Scottish Building Society RIO Mortgage

Scheme Background

The Scottish Building Society, Scotland’s only independent building society, offers a range of mortgages to residents of Scotland, including a residential mortgage that can help retirees borrow up to the age of 85.

This all-purpose loan can also assist people looking to raise capital to buy their rented property from the local authority or housing association.

The Scottish Building Society was formed in 1848. It has grown over the years with local mergers and still operates as a mutual. This status attributes the philosophy of careful money management and promotion of home ownership to its 30,000 members via its website and 6 building society branches.

In addition, Scottish Building Society now have a Retirement Interest-Only Mortgage (RIO) which will lend on a lifetime mortgage basis – see our RIO Mortgages Section.

Eligibility & Requirements

The Retirement Interest Only Mortgage (RIO) from Scottish Building Society is intended for owner occupiers over the age of 55.

Scottish Building Society will only lend on Scottish homes to owner occupiers with a sufficient and consistent income to satisfy their monthly interest-only mortgage payments.

Pension income and other income that can be retained beyond retirement at the discretion of Scottish Building Society are examples of eligible income. To determine affordability, the lender will evaluate any existing financial commitments.

For joint applications, like with other RIO Mortgages, the last survivor must be able to establish serviceability in their own right if one party dies.
If the home is owned in joint occupancy, Scottish BS will not lend in a sole name, thus both occupants must meet both the age and income standards to qualify for the RIO mortgage.

The maximum financing limit is 50% of the property’s worth or the purchase price, whichever is less. The smallest loan amount is £30,000, with a maximum RIO mortgage amount of £300,000.

For your personalized Scottish Building Society RIO Mortgage Key Facts Illustration, please call 0800 802 1051.

Scheme Features

The Scottish Building Society RIO Mortgage is essentially a residential mortgage that can be used as a lifetime mortgage into retirement. Because it is income-based, the lender will need to verify affordability. It can be utilized as a remortgage instrument to raise more cash in retirement for a variety of purposes.

The loan amount is computed using both income and property value criteria, with the maximum mortgage amount being up to 50% of the property value. The loan is secured by a first charge on the property, and monthly interest-only payments must be made for the life of the homeowner.

The Scottish Building Society Retirement Interest-Only mortgage is an interest-only mortgage with no repayment vehicle necessary. The RIO mortgage is not repayable until the last surviving borrower dies or enters long-term care.

The borrowed money receives a 3-year discount off the regular variable rate, with no early repayment penalties after the 3-year period. Monthly interest-only payments are required, which has the effect of keeping the mortgage balance constant for the duration of the plan period. Overpayments of 10% per year are permitted without penalty.

Because the Scottish Building Society is not a member of the Equity Release Council, their programs do not follow the same code of behavior as other equity release schemes, such as the no negative equity guarantee.

Scheme Options

The Scottish Building Society RIO Mortgage allows owner occupiers to spend their tax-free cash however they see fit, while maintaining the equity in their house through interest-only repayments. By continuing to make interest-only payments, the balance remaining level will be maintained for the duration of the mortgage.

There are a variety of 3-year discounted and 3-year fixed interest rates to choose from, as well as the option of paying an application fee or not.

*For remortgages on Scottish properties, the Scottish Building Society will contribute £150 towards legal fees, and the cost of a normal mortgage appraisal will be returned upon completion.

**The aforementioned rate is a 3-year discounted rate of 2.79 percent for three years (SVR less 2.5 percent ) – RIO mortgage transaction

Please call the team immediately for more information or to seek a quote on the Scottish Building Society RIO Mortgage.

Scottish Building Society's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

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

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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.

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