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 Review

RIO Mortgage Key Details

Type Rate APR
Scottish Building Society Discounted 2.44% 4.60%

Scheme Incentives

  • Free Valuation
  • Legal Fees Contribution

Scheme Offers

  • £150 Contribution Towards Legal Fees*
  • 3-Year Early Repayment Charges
  • Maximum LTV – 50%
Scottish 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 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 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 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!

What's Equity Release?

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.

Learn More: What’s Equity Release?

How Does Equity Release Work?

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: How Does Equity Release Work?

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Most popular reasons for releasing equity

Who Are Scottish Building Society?

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

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.

Minimum Property Valuation

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

Property Location Requirements

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

Single vs Joint

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

Minimum Release

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

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.

Valuation Features

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

Early Repayment Feature

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

Equity Release Council Status

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

Joint Application Features

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

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 Equity Release Supermarket team at 0800 802 1051 immediately for more information or to seek a quote on the Scottish Building Society RIO Mortgage.

Repayment Options

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

Inheritance Protection

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

Application Fees

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

Cashback Options

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

Footnotes

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

Editor’s Rating: 4.85

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.

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.

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How Much Can You Release?

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Rachel Wait
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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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