The need to knows about RIO

Starting with the basics, a RIO is…          

A Hodge residential mortgage designed for borrowers aged over 50 looking to mortgage their home in later life or looking for an alternative to equity release.

RIO isn’t just for retired people…

It might be called a Retirement Interest Only mortgage, but applicants don’t have to be retired to qualify. This means we’ll look at proof of employed and self-employed income, as eligibility for RIO is based on affordability.

You don’t need an equity release qualification to sell it…

Advisers don’t need an ER qualification to sell RIO mortgages which is great news for borrowers and lenders alike. RIO gives customers more choice and opens-up a whole new market for mainstream advisers.

Hodge offers RIO to younger customers…

Based on the feedback we’ve received from advisers, the minimum age requirement on our RIO and 55+ mortgage product is just 50 years of age. After nearly a year of RIO, the time has come to make sure this product is delivering what people want, and greater flexibility when it comes to age restrictions is what advisers told us they want.

Fee-free applications are par-for-the-course with Hodge…

On properties up to the value of £1m, customers can apply fee-free and free legal advice is included.

Flexibility is key…

Our policies are wider than your average – with a 70% LTV, minimum home value of £100k and an age range from 50-88 – we do everything we can to make sure each policy fits the customer.

Early repayment charges don’t apply for the full policy term…

ERCs only run for the first five years for five-year fixed rates, the first two years for two-year fixed rates and the first eight years for ten-year fixed rates.

RIOs can be for life…

We see RIOs as a solution for life and once in place will run till the customer passes away or moves into care. So, they can be confident they will get to stay in their home with no end point to worry about.

Hodge is doing everything it can to make sure RIOs deliver for customers…

With market-leading rates, free valuations, fee-free options, higher LTV limits and the market’s lowest age limit, our RIO sets a new standard on value and flexibility for the rapidly changing face of later-life.

If you’re interested in a RIO speak to your financial adviser or click below to use Unbiased.co.uk