SERVICES

Retirement Interest Only (RIO) mortgages are a specialized financial product designed to help older homeowners manage their finances in retirement. 

Unlike traditional interest-only mortgages, which require borrowers to repay the principal at the end of the term, RIO mortgages allow retirees to pay only the interest during their lifetime, with the principal repaid upon, death, sale of the property or the last surviving owner going into long-term care.

One of the key advantages of RIO mortgages is that they can free up cash for retirees, allowing them to maintain their lifestyle or cover living expenses without the burden of hefty monthly repayments. This can be particularly beneficial for those on a fixed income, as it provides flexibility while allowing them to remain in their homes.

Eligibility for a RIO mortgage typically requires the borrower to be over a certain age, often 55 or 60, and to own a property that has sufficient equity. Lenders usually assess the applicant’s financial situation, including income and outgoings, to ensure they can afford the interest payments. 

This means that RIO mortgages are generally more accessible for retirees compared to other forms of credit.

However, it’s important for potential borrowers to consider the long-term implications. While RIO mortgages can provide immediate financial relief, it is only the interest that is being paid, which means the principal capital borrowed does not change.

Additionally, the amount owed will reduce the inheritance left to heirs, which is
a significant consideration for many retirees.

In summary, Retirement Interest Only mortgages can be a valuable tool for older homeowners looking to optimize their financial situation during retirement

However, like any financial product, they require careful consideration and planning to ensure they align with long-term goals and needs.

Lifetime Mortgages are a popular form of equity release designed for homeowners aged 55 and older, allowing them to access the equity in their homes without having to sell or move. 

This financial product enables retirees to unlock cash tied up in their property, providing funds for various needs such as home improvements, travel, or supplementing retirement income.

With a Lifetime Mortgage, the homeowner retains ownership of the property while borrowing against its value. Borrowers can choose whether to pay the interest monthly or allow it to roll up, which means it accumulates over time and is added to the total loan amount. 

The loan, along with any accrued interest, is typically repaid when the homeowner dies or moves into long-term care.

One of the main attractions of Lifetime Mortgages is their flexibility. Borrowers can often access a percentage of their home’s value - typically between 20% to 60%, depending on their age and property value. This can provide substantial funds without the stress of monthly repayments, making it an appealing option for retirees living on fixed incomes.

However, there are important considerations to keep in mind. The amount borrowed, plus interest, will reduce the homeowner’s equity and the inheritance left to beneficiaries. This aspect can be a significant concern for many families. Additionally, since the interest can compound over time, the total repayment amount can grow significantly, which could affect the estate’s value.

It’s essential for prospective borrowers to seek independent financial advice before opting for a Lifetime Mortgage. Understanding the implications, potential fees, and how it fits into overall financial plans is crucial for making informed decisions. 

Ultimately, while Lifetime Mortgages can offer financial relief and flexibility, careful planning and consideration are key to ensuring they align with long-term goals.

Whose Products do we offer?

We access the Whole-Of-Market, that means we can approach over 100
lenders that are regulated and those that are not regulated by the Financial Conduct Authority. 

Which Service will we provide you with?

We will advise and recommend for you on a first (or second) charge Mortgage of Secured Loan after we have assessed your needs. We do not do execution-only Brokerage.

What will you have to pay for our services?

For a Regulated Mortgage a fee between 0.5% and 1% (minimum £349.00) of the loan amount payable on OFFER. The total fee will be based on your circumstances, employment record, and credit history. For example, a fee of 0.5% on a £100,000 Regulated Mortgage would equate to a fee of £500. 

We will provide you with written confirmation of your fee before the commencement
of any chargeable activity. We will also receive a commission from the lender. 

If you’d like to know what the commission is please ask your adviser.

The above does not apply for Non-Regulated activity. Your Broker will confirm your fee before the commencement of any chargeable activity. We will also receive a commission from the lender.

Our Refund Policy for Mortgage Fees For Regulated Mortgages, if we charge you a fee upfront and your mortgages does not go ahead you will receive a refund. However, if an offer is confirmed from the agreed lender and you do not decide to proceed, a refund is not applicable.

Whose Products do we offer?

We access the Whole-Of-Market, that means we can approach any of the UK Licensed Life Insurance providers that are regulated by the Financial Conduct Authority. We can offer a non-limited product offering on Life assurance, Critical Illness Cover, Income Protection, Household Insurance, accident, sickness, and unemployment insurance and cash lump sum accident protection.

Which Service will we provide you with?

We are an insurance intermediary representing you, not any insurer. We will provide you with a personal recommendation after we have assessed you needs.

What will you have to pay for our services?

We arrange the policy with the insurer on your behalf, you do not pay us a fee for doing this. We receive a commission from the insurer which is a percentage of the total annual premium. You will receive a quotation which will tell you about any other fees relating to any particular insurance policy.

Who Regulates Us?

MCU Mortgages is a trading style of Ulett Residential & Commercial Mortgages Ltd, which is an appointed representative of Woodley Limited. Woodley Limited is authorised and regulated by the Financial Conduct Authority under FRN 918604.

What to do if you have a complaint?

If you wish to register a complaint, please contact the Complaints Management Team via the following email: info@mcumortgages.co.uk

If you cannot settle the complaint with us?

Please refer to the Financial Ombudsman Service on

TEL: 0800 023 4567 or go online to:
www.financial-ombudsman.org.uk/consumers/how-to-complain