The Sunday Times looked this weekend at the new style Retirement Interest Only mortgages (RIOs), which have been launched in recent weeks, following a rule change by the Financial Conduct Authority.
In March the regulator redefined this type of deal as a standard mortgage, whereas previously it had been grouped in with more complex lifetime and equity release products. This change has made it easier for lenders to offer products to borrowers, and while only a small number currently do, this is set to improve as the market grows.
RIO mortgages have no end date or term, and no age restrictions, allowing homeowners to take a mortgage through until they die or go into long-term care. This will certainly come as welcome news to older borrowers who have previously found their mortgage options very restricted.
Elsewhere the Mail on Sunday highlighted strategies for saving money, revealing that millions of people are paying too much on mortgages and utilities simply by not switching when their incentive period finishes.
Approximately 800,000 homeowners have been on their lender’s Standard Variable Rate for at least 6 months, and could save thousands by switching to a new deal.
What the papers said about saving money and older borrowers