Vernon 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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Vernon Building Society RIO Mortgage Review

RIO Mortgage Key Details

Type Rate APR
Vernon Building Society Discounted 4.7% 5.20%

Scheme Incentives

  • Free Application

Scheme Offers

  • Interest-Only Mortgage
  • LPA Requirement*
  • Maximum LTV – 50%
Vernon 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 Vernon 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 Vernon Building Society RIO Mortgage be the right equity release plan for you?
We’re here to help you:
Vernon 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 Vernon 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 Vernon Building Society?

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

Scheme Background

Find competitive mortgages, savings and investment products from a trusted source in Stockport, Chesire.

Founded as an independent mutual building society The Vernon has provided reliable financial advice within the local community since 1924.

In addition to a a range of mortgage products, Vernon Building Society also offers specialist Retirement Mortgages.

Serving all local communities, the society is in favour of lending to retirees who are in receipt of verifiable income, thus allowing homeowners over the age of 55 to secure Retirement Interest Only Mortgages (RIO’s) on their property.

Eligibility & Requirements

The Vernon 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.

This RIO mortgage could be used by homeowners who want to release some equity for retirement planning or who just want to move.

The Vernon RIO Mortgage is accessible on both a single and joint life basis, with the youngest homeowner being 55 years old. There is no upper age limit.

This RIO mortgage has a minimum loan of £25,000 and a maximum loan of £250,000. Please call the Equity Release Supermarket team on Freephone – 0800 802 1051 to assess qualification and request your customised quotation for mortgage applications over £250,000.

There is no set minimum acceptable level of income that should ideally be indexed. To determine affordability, the Society employs income and expenditure analyses rather than income multiples.

Vernon’s retirement mortgage requires a minimum property valuation of £80,000, with no minimum equity remaining required. Furthermore, the property must be the homeowner’s primary residence and must be located in England or Wales.

Adverse credit, such as arrears, defaults, and CCJs, may be acceptable depending on the amount, duration, and degree of credit registered. To confirm your eligibility, please call the Equity Release Supermarket team at 0800 802 1051.

Minimum Property Valuation

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

Property Location Requirements

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

Single vs Joint

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

Minimum Release

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

Scheme Features

RIO Mortgages offer an initial tax-free lump sum cash release for instant use, with the option to make monthly repayments to the Vernon of only interest.

There is no maximum period; it will last as long as the last remaining homeowner lives. No repayment strategy, such as endowment, investment, or repayment basis, is required. The loan is a lifelong interest-only mortgage with no predetermined termination date.

If necessary, the borrowed amount can be repaid through the sale of the property when the borrower dies or moves into other housing, such as long-term care. During the life of the mortgage, you are responsible for making monthly payments that might be either interest only (paying off no capital) or capital and interest repayment.

The maximum loan-to-value (LTV) on an interest-only mortgage is 50 percent of the property valuation, subject to income qualifying.

In contrast to equity release programs, there are no safeguards in place with this mortgage product if the borrower is unable to make payments. Because this is a residential mortgage, there are no safeguards in place if something unforeseen occurs, prohibiting the homeowner from making payments. In order to use this program, homeowners must be satisfied that their income will be substantial and consistent enough to meet their payment commitments.

The homeowner is responsible for making all monthly interest payments as they become due until the RIO mortgage is paid off. This means that if the homeowner does not keep up with payments, their home may be at jeopardy.

If a single applicant dies before the end of the term, the mortgage must still be repaid, usually through the sale of the home. If your application is joint, the mortgage payments may become unmanageable if either party dies. This may force the sale of the property and the survivor’s relocation to alternate housing. You should prepare for this possibility by making a plan.

Because the Vernon 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.

Vernon’s Retirement Interest-Only mortgages have no early repayment penalties, so you can pay off the loan whenever you want.

Valuation Features

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

Early Repayment Feature

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

Equity Release Council Status

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

Joint Application Features

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

Scheme Options

This Vernon Retirement Mortgage allows any homeowner to spend their tax-free wealth whenever they see fit, but unlike roll-up equity release programs, they may also make monthly interest-only repayments to control the future sum as they see fit.

The society will accept applications based on retirees purchasing homes, remortgaging businesses, and unencumbered properties.

The Vernon RIO Mortgage may allow you additional financing, but availability and approval are not assured. The available amount is closely tied to the homeowner’s capacity to afford the larger loan amount and will thus go through the same affordability verification process.

The mortgage is transferable and can be moved to a new house.

Within its product line, the Vernon RIO mortgage often offers lower rates. They are, however, subject to change, so call the Equity Release Supermarket team on Freephone – 0800 802 1051 for the most up-to-date interest rates on offer.

Please call the Equity Release Supermarket team at 0800 802 1051 today for more information or to seek a quote on the society’s RIO mortgage.

Applicants who have a Lasting Power of Attorney (LPA) may qualify for a lower interest rate. If the LPA is registered after the mortgage is closed, Vernon will apply the advertised rate upon receipt of proof of LPA registration.

Repayment Options

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

Inheritance Protection

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

Application Fees

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

Cashback Options

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

Footnotes

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

Editor’s Rating: 4.85

Vernon Building Society's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by Vernon 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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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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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
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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
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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

Value of Your Home?

50000

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100% Secure & Fast. Takes Just 8 Seconds.

As Featured In
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