Hinckley & Rugby opens RIO discount term to whole of market

Intermediaries can now access a discount for term RIO mortgage from Hinckley & Rugby following a successful trial of an exclusive with Legal & General Mortgage Club.

The discount for term product is 2.55% off the Society’s SVR whilst the current charging rate is 3.59%. Applicants must be at least 55 but there is no maximum age. Valuation is free on properties worth up to £1m.

All sustainable sources of income into retirement will be considered and the loan will be repaid from the sale proceeds of the property after a specified life event such as death or moving into long-term care.

Carolyn Thornley-Yates, Hinckley & Rugby's head of sales and marketing, said: “We stepped into the RIO market in May and have been so encouraged by the response that we now want to offer it to all intermediaries.“Our manual underwriting policy is particularly well suited to understanding and working with older borrowers.

"Any complex cases can be considered by the daily meetings of our Mortgage Referral Committee of senior decision makers and underwriters.“Our helpful team at H&R for Intermediaries is keen to hear from advisers who are looking for later life lending on behalf of their clients.”

Answers in Retirement Group’s commercial director Gary Little added: “Given the strength of H&R for Intermediaries’ RIO proposition, it seemed natural that the next step would be to open up its distribution to the wider market.

“Certainly, the advisers of AIR Mortgage Club and their clients will benefit from having access to this, especially in terms of the certainty it delivers to later life clients and the extra options it offers, such as the offset savings facility.

“It’s positive to see a lender pushing the envelope in this area and recognising strong demand from later life borrowers. I’m sure it will be met positively by our member firms.”

There is an application fee of £199 and the £800 completion fee for the product. Both can be added to the loan.