Full Stack Web Developer, LiveMore Mortgages

RIO mortgages are effectively standard home loan deals with one key difference: the mortgage does not have a set end date and carries on until “a specified life event” is triggered – ie, the borrower’s death or the date they move into a care home. Until then, they continue to pay the interest each month and the loan is ultimately repaid from the sale of their property. These home loans appeal to people who would otherwise consider equity release products. The key difference between RIO mortgages and equity release is that RIO have monthly payments, whereas the interest on equity release mortgages rolls up and are repaid at the end, so are more expensive.

RIO mortgages are still a niche product, but are growing in popularity with the rise in older people that have the majority of wealth tied up in their homes. This gives LiveMore a large and growing market to tap into. The company recently received an impressive funding line with NatWest Markets, which will facilitate its portfolio growth and loan origination for interest-only mortgage products.