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Ease your mortgage worries with Perenna’s Retirement Interest Only (RIO) mortgage

Are you among the over-55s worried about your mortgage's affordability? You're not alone. 8 February 2024 by Abi Walker

Our latest research sheds light on the financial anxieties faced by this demographic regarding mortgage affordability and accessibility. 

Six in ten (60%) of over 55s report a lack of choice and mortgage products tailored to them and over a third (36%) believe their mortgage is restrictive because of their age. 

According to our findings, over a quarter of over-55s (28%) express concerns about affording their mortgage, particularly if it moves to their lender’s Standard Variable Rate (SVR). An extra 36% expect difficulties in managing repayments, bringing the total to almost two-thirds (64%) who may face financial strain. 

 This financial pressure can lead to tough decisions for borrowers later in life. 

Many are left with limited options and are considering selling or downsizing their homes to address their financial challenges. In fact, more than a third (37%) are considering selling their homes to relocate or downsize, with this figure rising to nearly half (48%) in London. 

Traditionally lenders’ age limit restrictions worsen the situation, with nearly two-thirds (60%) of respondents expressing concerns about the lack of tailored financial products for older borrowers. Thirty-six percent feel excluded from the market due to age restrictions, finding their mortgage options restrictive. 

These financial worries not only impact homeowners’ financial stability but also affect their lifestyle choices. Our research reveals that nearly a fifth (18%) of respondent’s report that mortgage repayments have limited their ability to travel or engage in leisure activities.  

Additionally, 17% express concerns about financial stability, while 9% have postponed retirement plans to focus on mortgage repayment. 

 At Perenna, we believe in providing solutions that offer flexibility and give borrowers more options. That’s why we’ve launched our Retirement Interest Only (RIO) mortgage for those aged over 50, featuring a long-term fixed-rate. Starting at a market leading long-term fixed-rate of 5.84% (up to a maximum 60% LTV), our RIO mortgage provides the security of fixed payments over an extended term, ensuring homeowners can enjoy retirement with peace of mind. 

Our CEO and co-founder of Perenna, Arjan Verbeek, emphasised the need for inclusivity in the mortgage market, particularly for older demographics. He stated, “The current UK mortgage market is ageist. A whole demographic is being unfairly excluded and left behind, because of their age. We think that is wrong. 

The lack of options for people over 55, compounded by fears of being trapped on their provider’s SVR, is a significant concern. Verbeek continued, “Retirees should have solutions available to live the lives they desire and deserve. Our new long-term fixed-rate retirement interest-only mortgage is a step towards financial freedom for older homeowners.” 

Our new long-term fixed-rate retirement interest-only mortgage is a step towards financial freedom for older homeowners.  

Want to find out more?   

Our mortgages are currently available through mortgage brokers only. So, if you’d like some mortgage advice, that’s no problem. We can help find someone near you. They’ll provide tailored advice based on your mortgage needs. Plus, they’ll know all about our mortgages, so can answer any questions you may have.  

Find a broker. 

 You could lose your home if you don’t keep up your mortgage repayments. 

Notes 

  • All data, unless otherwise specified, is taken from 1,003 respondents conducted by Censuswide in January 2024 – all respondents were homeowners aged 55+ and either heading into retirement or already retired. 
  • Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles. 
  • “Market leading” – determined by lowest fixed for life retirement interest only product on the market as of 4 February 2024 https://www.equityreleasesupermarket.com/compare-deals/retirement-interest-only 
  • End of term age limit – this refers to the age by which the borrower has repaid their mortgage. 

All information correct at time of publication