At a glance

  • LTV Rate The LTV rate for a RIO is much higher (60%) than a Lifetime Mortgage (typically 25-30%) Meaning your customer can get a higher amount 
  • Use the money however they want You can spend it in all sorts of ways. If you give the money away, you may need to pay inheritance tax in the future. There are few restrictions on how you spend the money. You can even pay off an existing mortgage.
  • Interest is payable each month The interest due is payable in full each month, so your customer always know how much they owe.
  • There’s no fixed term They don't have to repay the loan on a specific date. It’s repaid when the customer dies or when they move permanently into long-term care. At this point, the property is sold and the loan repaid. If they take out the loan with someone else, the property isn’t sold until both of them have either died or moved permanently into long-term care.
  • The interest rate doesn’t vary The interest rate is fixed throughout so there are no surprises. They pay the same amount every month.
  • They can pay more to reduce how much they owe If they want to pay off more than the interest due each month, they can make overpayments from time to time. So long as any overpayments don’t exceed our limits, there are no charges.

Is a Retirement Interest-Only Mortgage right for your customer?

What happens to the existing mortgage?

Can be used to repay an existing mortgage. They need to use the Retirement Interest Only Mortgage to pay it off and they may have to pay an early repayment charge to the existing lender.

No negative equity guarantee

Whatever happens to the value of the customer’s property, they will never owe more than the price it is sold for. Subject to terms and conditions.

Fixed interest rates

The rates for a Legal & General Retirement Interest Only Mortgaes are fixed so they will never change during the life of the loan.

Making payments

If you miss monthly interest payments Legal & General will always try and help. If we can’t resolve the situation, as a last resort your home may be repossessed.

They're portable

If your customer wants to move home in the future, they can port the loan to the new property.

Common questions