A RIO exists for those over 55 who are looking for an interest-free mortgage in retirement. This could be a new mortgage or replacing their current interest-free mortgage with a mortgage that allows them to continue paying interest for the rest of the time they live in their home. A RIO is a loan secured by your client`s home. If a customer purchases a RIO, they may be able to take out a larger mortgage at that time than they currently have, based on affordability tests. You can use it for things like: A life mortgage reduces the remaining equity in your home and the value of an inheritance. A life mortgage is usually paid off when the last borrower dies or leaves home for a long-term care facility. To help you get started, we`ve listed a few reasons why you`d want to advise yourself on a life mortgage. More and more people are using mortgages later in life as part of their retirement savings. This is not surprising. A mortgage later can support your clients` retirement plans in several ways.

It could be used to allow for a more comfortable retirement, or instead of taking pension income. This could reduce income tax and reduce the tax payable in the event of death. Your client`s income and expenses are assessed to ensure they can afford the mortgage. You cannot purchase a stock release product unless you have sought financial advice. Learn how to access independent legal and financial advice. Whether you want to pay off an existing mortgage, do some DIY or give money to a family member, a lifetime mortgage could help. Unfortunately, due to the information you provide, we are unable to lend your clients the requested mortgage amount, but your clients may be able to take out loans: Downsizing protection allows clients to pay off their life mortgage without having to pay a prepayment charge if they move and their new property does not meet our loan criteria. To advise or refer clients on life mortgages, you must be suitably qualified. If you want to advise yourself directly, we can help you.

You will need a certificate of release to meet the FCA`s requirements for mortgage professionals and those advising on share release programs. Your customer can use our optional partial redemption feature, which allows them to reduce the amount they owe by making partial repayments without a prepayment charge. This reduces the total amount of interest that accrues on their life mortgage. Clients must have had their life mortgage for five years or more to be eligible for downsizing protection. There is no loan period. The mortgage lasts until the death of the last borrower or until the last borrower moves from home to a long-term care facility. Since the money you release with a life mortgage is borrowed from your equity, it remains tax-free. Our affordability calculator gives you an indication of how much your client could borrow. Be sure to fill out the mortgage amount, income and monthly payments as accurately as possible. Many myths remain about life mortgages.

We`ve cleared up some misconceptions you might encounter so you can help your clients make informed financial decisions. This is an estimate of how much you may be able to release. The amount you can release depends on your property and personal circumstances. Taking out a life mortgage may affect your eligibility for government benefits. Our lifetime mortgage calculator helps financial advisors: the mortgage amount is based on the information you provide and does not require us to offer a mortgage to your clients. The exact amount we borrow is subject to a credit check, confirmation of your income and the value and suitability of your property. If any of these details change, the amount of the mortgage we offer may change. A life mortgage is designed to last a lifetime.

If you decide to pay off your life mortgage in full, you may have to pay a prepayment charge, which can be substantial, so think carefully before you decide. A subsequent mortgage can help transfer money to children or grandchildren, perhaps to buy a first home or even pay off your client`s existing mortgage. It can serve as a safety net in case of unexpected expenses or can be used to finance the costs of care. It can even help if couples separate or divorce later in life. You will need one of the following equity-raising qualifications to advise on life mortgages. There are no monthly payments with our flexible life mortgage. Instead, interest is added to the amount they owe each month. This means that we charge interest on the loan plus interest already added. The amount is usually repaid from the sale of her home if she or the remaining applicant (if the mortgage is in common name) dies or moves from their home to a long-term care facility.

Once the fixed-rate term ends, the monthly income will be interrupted, but interest will continue to increase until the life mortgage is paid off. Our lifetime mortgage specialists are available to answer all your questions. Call us today. Or, if you wish, give us your number and we will call you back. Better regulation in the industry and better financial education mean lifetime mortgages for those over 55 become a more viable option for freeing up money later in life. Which mortgage for life later is right for your client? Each month, they pay interest on the balance of the mortgage. This amount is fixed for the duration of their mortgage, which gives them certainty about what they will owe each month. The calculator results are just examples. A life mortgage is a secured loan on your client`s home. This reduces the value of your client`s estate and may affect their entitlement to means-tested state benefits. Our negative equity guarantee means that your client or their beneficiaries will never have to repay more than the amount for which the property is sold. This is provided that it is sold at the best reasonably available price and that your client has complied with the terms of his life mortgage.

By paying some or all of the monthly interest, your client can reduce the total cost of the life mortgage on a loan secured by your client`s home. An interest-free mortgage. RIO is a kind of residential mortgage for people over 55. A retirement interest-only mortgage is a loan secured by your home. You have to pay interest monthly, but the full amount of the loan is usually not repaid until you die or move home to a long-term care facility. As a last resort, your home can be repossessed if you do not honor repayments. Yes, your client can pay off their life mortgage early, but they may have to pay a prepayment fee. Prepayment charges could be substantial. The amount that can be borrowed is based on an affordability score, which looks at your client`s income and expenses to make sure they can support payments.

Joint applications are based on the current or future income of the applicant with the lowest income to ensure that they can still afford the mortgage if something were to happen to the other applicant. A life mortgage is a secured loan on your home. Interest will be charged on the loan plus interest already added. This means that the amount you owe can increase quickly over time. There may be cheaper ways for you to borrow money. Life mortgages are available to homeowners aged 55 and over. You can take the money as a lump sum or as a lump sum. No reimbursement is required until you die or until you leave home to move into a long-term care facility. Once you`ve received a sum, you`ll need to make a full political decision to get the exact amount your client can borrow. This is subject to the information you provide and the results of a credit check. Applications are subject to our usual credit criteria, status and financial capacity.

During our 2017 lifetime mortgage survey, we spoke to UK advisors and asked, “How do you use lifetime mortgages to help your clients?” Our results showed that: Means-tested benefitsTaking out a life mortgage can affect your eligibility for means-tested benefits or pension credits. This calculator will help you see how much equity you could free up with a life mortgage, a loan secured by your home. We will ask you to save your details to show you the calculation, and then we will call you. One of the most important things people want to know about lifetime mortgages is the cost of the loan. This answer consists of two parts: To tell us about a life mortgage, call our team of advisors at the number below. For more information, please contact us through our Contact Information Useful resources and tools to help new advisors get started in the life mortgage market. A life mortgage allows your clients to free up equity in their home without moving, and is a loan secured by the client`s home. Cost of releasing equity: These are the costs you will have to pay during the process of releasing equity with a lifetime mortgage, such as brokerage fees and attorney`s fees. We do not charge a consultation fee. A life mortgage is a type of home equity release, a loan that is secured by your home and allows you to free up tax-free money without having to move. If you want the opportunity to free up more equity in the future, an advisor can help you achieve this with a life mortgage. If your client decides they want to move but don`t want to transfer their life mortgage, or if they choose to pay off their life mortgage for some other reason, they may still have to pay a prepayment charge.

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