RIO or OPLM: a comparison
If you have a client aged 55 or over with an interest-only mortgage that they cannot repay, but can afford to continue with monthly payments, there are a range of solutions that could help them.
Some people choose to use their savings or downsize to repay the original mortgage. Some lenders will even extend the mortgage term. However, these options aren't possible or practical for everyone.
If your client wants to stay in the home they love, we have two key products that could be an option for them: the Retirement Interest Only Mortgage (RIO) and the Optional Payment Lifetime Mortgage (OPLM).
But which mortgage is right for your client?
Both products allow your clients to:
Release cash from their home.
Retain ownership of, and stay in their own home.
Enjoy fixed interest rates.
Repay the loan when the last borrower dies or moves out and into long-term care.
Take their mortgage with them when they move.
Make additional payments to reduce the amount they owe and the total amount of interest charged on the mortgage.
The differences
Optional Payment Lifetime Mortgage
Retirement Interest Only Mortgage
Need more help?
Talk to us. We’re committed to helping advisers understand the role that later life lending can play in helping clients achieve their financial objectives and a more colourful retirement.
If you have questions, get in touch with one of our experts.
Find out more
RIO
Our RIO homepage hosts a wealth of resources for advisers, including useful factsheets - and more.
Try our affordability calculator
See how much your client can borrow with our affordability calculator.
Optional Payment Lifetime Mortgage
Allows your clients to release equity from their home and pay some or all of the monthly interest which will reduce the amount of interest that rolls up.