Retirement Interest Only (RIO) Mortgage Calculator
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Could Your Property Support You During Retirement?
What's Equity Release?
Equity release is a financial term for a group of products that allow you to unlock the capital1 invested in your home.
It can be either a lifetime mortgage product or a home reversion scheme.
The lump-sum amount released is tax-free.
Looking for Something Specific?
Contributors:
Expert Verified Do you want to boost your retirement income but don’t know where to begin?
Why not opt for a retirement interest-only mortgage (RIO)?Â
With an RIO, you can access tax-free cash locked up in your home and only pay fixed interest installments monthly with no repayment term.
Sound too good to be true?
This article explores the following topics, drawing on our expertise in the field:
Our research team constantly reviews the latest retirement interest-only mortgage information so we can keep you updated on the top industry information.
Here’s what we discovered!
How Are Retirement Interest-Only (RIO) Mortgages Calculated?
A retirement interest-only mortgage is calculated by taking your retirement income, age, property condition, and location into account.
How Will a Retirement Mortgage Lender Calculate the Amount I Can Borrow?
When you apply for a retirement interest-only mortgage, your lender1Â will calculate the amount you can borrow by checking your affordability.
Your retirement income needs to cover your retirement expenses as well as the interest repayments on the RIO you apply for.Â
Typically, you can expect to borrow between 4 to 5.5 times your annual retirement income; sometimes, this can be up to 8.52Â times depending on the lender.
What’s an RIO Mortgage Calculator?
An RIO Mortgage calculator is a tool you can use to get an estimate of how much you might be able to borrow using a retirement interest-only mortgage in a few short minutes.
What Information Do I Need to Provide to Use an RIO Mortgage Calculator?
The information you need to provide to use an RIO mortgage calculator is the value of your home, the youngest homeowner’s age, which should be 55, and your property’s postal code.
How to Use a Retirement Interest-Only Mortgage Calculator
To use a retirement interest-only mortgage calculator, you’ll input the following information, and it’ll give you an estimate of much money you could borrow:
- The value3Â of your property, which must be at least ÂŁ70,000.
- The age of the youngest homeowner, who must be at least 55 years old.
- Your property’s postal code, to get your property location which, must be in the UK.
Once you’ve entered your information and hit submit, the calculator will send you an estimate of how much you could get with a retirement interest-only mortgage.Â
Why Should I Use a Retirement Interest-Only Mortgage Calculator?
You should use a retirement interest-only mortgage calculator to give you an estimate of how much equity release lenders may be willing to loan you.Â
You can also use this calculator to better understand the impact of different interest rates on your repayment amounts.
Common Questions
Do RIO Mortgage Calculators Factor in Age Limits?
Are There RIO Mortgage Calculators for Pensioners With Bad Credit?
In Conclusion
Using a retirement interest-only calculator could be your first step to a more comfortable retirement.
Retirement interest-only mortgages are the most recent addition to the field of retirement mortgage schemes and are a terrific alternative to lifetime mortgages.
We strongly urge you to carefully consider all of your choices and consult with a financial adviser before making any final decisions.
What are you waiting for? Try our RIO mortgage calculator for free today!
