Christian financial institution Kingdom Bank has launched a new mortgage product aimed specifically for experienced gospel workers, especially those living in church-owned property, who may previously have struggled to buy a house for their retirement.
The Retirement Interest-Only (RIO) Mortgage is designed for those in ministry aged over 50, and those already retired. It is suitable for church ministers, missionaries based here or abroad, or other Christian workers. Kingdom Bank will lend customers up to 70% of the value of the property, with affordable interest-only payments (currently about 6%), so they are not shackled with the burden of capital repayments. Only properties in the UK are eligible. Lump sum repayments may be made at any time to redeem the mortgage; properties may also be rented before they are required for occupation, thereby giving borrowers an immediate income.
The capital will be repaid on the death of the borrower (or spouse, which ever is the later) or when they move permanently into long-term care. At this point, the property is sold and the mortgage repaid.
