Paul Barrett responded to the article: Retirement interest-only mortgage market flourishes
He said: “I’m surprised lenders aren’t clamouring for retirement interest-only (RIO) business. It is far superior to normal lending.
“Usually, the properties to be mortgaged have massive equity in them. The ability to have excellent security and a possible 30-year additional mortgage term gives lenders a 60-year mortgage profit line.
Barrett added: “I would suggest that lenders automatically offer conversion of any type of mortgage to a RIO one and allow continual 75 per cent loan to value (LTV).”