Retirement repayment mortgages

Could your clients be better suited to a retirement repayment mortgage? We'll help look at all options

What is a later life retirement repayment mortgage mortgage?

A later life repayment mortgage is designed to help client over 50 and most tend to run for a number of years tailored to the client. Similar to a residential mortgage where you make payments which covers both capital an interest – unlike a Retirement Interest Only mortgage (RIO). Ability to qualify for a retirement repayment mortgage will depend on affordability similar a standard residential mortgage.

Even though the repayments are higher than with a retirement interest-only mortgage, your client will have an end date because they’re paying off the capital and interest. With a RIO, they will be required to make repayments for the rest of their life.

Once they reach the end-date and make all the required repayments, your client will be able to pass on more property wealth down to their beneficiaries. Plus, the overall cost of borrowing works out cheaper than if they choose a RIO. However, mortgage suitability will depend on your client’s financial circumstances and capacity to commit to repaying certain quantities each month.

If you think your client is too old or can’t find a conventional mortgage to meet their clients needs, refer your client to our expert team and we will explore all their options. We do all the hard work and you’ll earn a referral fee if they take our advice.

Types of retirement repayment mortgages

With a retirement repayment mortgage, there are typically two types of plans that are considered when Key Partnerships are advising your referred client:

Fixed interest rate mortgage

A fixed-rate retirement repayment mortgage means your repayments will remain the same for a set period regardless of how interest rates change across the market. These products normally last from two to five years, though it can vary depending on the mortgage provider.

Variable interest rate mortgage

A variable interest rate means your retirement mortgage repayments may go up or down depending on how the market rate changes. There are different variable-rate mortgages you can apply for from multiple providers.

Which option suits your client best?

Our Later Life Lending Navigator Tool can help you stay on the right side of regulatory changes whilst providing great outcomes for your clients – and, deliver a straightforward way of generating an additional revenue stream into your business this year. It provides a simple way to triage a customer based on their affordability and needs.

Developed by advisers and reviewed by industry stakeholders, our brand-new tool helps you assess and record the suitability of your clients’ different later life lending options, including RIOs, residential, lifetime mortgages and payment term lifetime mortgages, to ensure the product, and advice journey, you recommend is the right one.