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‘Mortgages should automatically convert to RIOs’ – Star Letter 05/02/2021

  • 05/02/2021
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‘Mortgages should automatically convert to RIOs’ – Star Letter 05/02/2021
Each week Mortgage Solutions and its sister title Specialist Lending Solutions pick the top comment from our readers.


Paul Barrett responded to the articleRetirement 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). 

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