Perenna Launches RIO Mortgage for Over 50s

Perenna, a digital mortgage lender, has rolled out a novel financial solution aimed squarely at the over-50 crowd. This new offering, a Retirement Interest-Only (RIO) mortgage, promises borrower-friendly terms and innovative structure.

Key Features of the RIO Mortgage

  • Loan-to-Value Ratio: Borrowers can access up to 60% of their property’s value, providing a generous amount of capital to work with while maintaining equity in their home.
  • Competitive Rates: With interest rates starting from 5.84%, this product is positioned as an attractive option for those seeking to finance their home purchase or remortgage without the burden of exorbitant costs.
  • Interest-Only Payments: This feature underscores the flexibility of Perenna’s RIO mortgage, allowing borrowers to manage their monthly expenses more effectively by only covering the interest on the loan for the duration of the term.

Expanding Choices for Mature Borrowers

Beyond the RIO mortgage, Perenna has broadened its offerings to include an interest-only option that extends to both new purchases and remortgaging customers. This variant permits a higher loan-to-value ratio of up to 75%, catering to a wider range of financial needs and circumstances.

The introduction of these products follows on the heels of Perenna’s launch of a long-term fixed-rate repayment mortgage. This earlier innovation set the stage by offering borrowers increased affordability, stability through fixed rates for the life of the mortgage, and flexibility with early repayment charges capped at just five years.

Colin Bell, co-founder and chief operating officer of Perenna, said, “Our RIO is a game changer for brokers and borrowers alike. Those aged over 50 have narrow options when it comes to mortgage products. With our market leading long-term fixed rate RIO, we provide a great choice for those in or approaching retirement, with ERC for only five years putting you in control.”