The Financial Times reported this weekend on the increase in the number of Retirement Interest Only (RIO) mortgages coming onto the market, as lender confidence in this type of product grows.
Earlier this year the Financial Conduct Authority (FCA) reclassified RIO deals as a ‘standard’ mortgage, making it easier for mainstream lenders to offer them. Borrowers must make regular interest payments until they die or go into long term care, and must be able to demonstrate that the loan is affordable for life.
A number of building societies have already started offering this type of deal, while some other high street lenders have also announced their intention to join the market in the coming months.
Elsewhere, the Sunday Express revealed that industry experts are calling for further cuts to Stamp Duty Tax in order to help buyers and those looking to downsize.
Philip Hammond cut stamp duty for first time buyers on properties up to £500,000 in last November’s budget, which has helped to revive that end of the market. Some are now asking for this to be applied in other areas of the market, in a bid to cut costs for those wanting to move up or down the ladder.
What the papers said about older borrowers and stamp duty