The Cambridge launches new Retirement Interest Only (RIO) mortgage
18 July 2019 • Products & Services
Today we launched a Retirement Interest Only mortgage, the first time that these later-life lending mortgages have been included in our product portfolio.
Following our announcement in 2016 that we removed the upper age limit on our repayment lending products, introducing a dedicated Retirement Interest Only mortgage to provide more lending options for this group of borrowers is a natural addition to our lending proposition.
The new RIO product is being launched exclusively via our direct lending channel initially, and is aimed at supporting both existing borrowers looking for alternative borrowing at the end of their current term, as well as new customers looking to free up equity in their property.
This announcement comes at a time when industry reports are stating that mortgage debt for over 65s is projected to increase. With an increase in house prices and older householders, the need for lending to those in later life is expected to continue to grow.
Dan Barker, Product Manager at The Cambridge comments on the new release, “With an increase in the number of older households and rising house prices resulting in higher mortgage values, we recognise that there is a growing need in this segment for a mortgage to help those who would like to unlock the value in their property to fund their retirement or support their loved ones.”