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Retirement Interest-Only (RIO) mortgages 

Our RIO mortgages are suitable for those aged 65 and over, who would like to stay in their home and avoid downsizing.

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The mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

What are the advantages and disadvantages of taking out a Retirement Interest-Only mortgage?


  • You pay off the interest each month so that it's not added to the loan. At the end of the term, you'll only owe what you borrowed. This is unlike a standard lifetime mortgage where the interest is added to the loan, and at the end of the term you owe more than you borrowed. As the balance of the RIO mortgage does not increase over time, there is likely to be more equity in the property when it's eventually sold when compared to a lifetime mortgage, however the value of equity will also depend on property value changes.

  • You don't need to be retired, we only ask that you are 65 years or older.

  • A RIO mortgage doesn't have a set end date and carries on until a specified life event occurs, such as going into long-term care or when you (or for joint borrowers, the surviving borrower) pass away. This allows you to remain in your property as long you like until the life event occurs, which is potentially longer than a standard Interest-Only loan which has a defined term end date.

  • Our RIO mortgage can be used if your current interest only mortgage is coming to an end, however you can also use a RIO mortgage to release equity from your home. This could be used to help children or grandchildren onto the property ladder or for some home improvements.


  • A RIO mortgage is an Interest-Only mortgage so you will not be paying off any of the capital of the mortgage. However, depending on the type of RIO you choose, you may be able to pay off some of the capital each year as an overpayment.

  • You'll need to be able to pay the interest payment each month until the end of the term. You'll need to pass affordability checks when taking out the mortgage, and if you're taking out a RIO mortgage with a spouse or partner, you'll need to be able to show that each of you could afford the monthly payments should the other pass away.

  • There‚Äôs no fixed end date with the RIO, but the mortgage will still have to be repaid. This would usually happen when your house is sold when you pass-away or if you move into long term care. This means you may not be able to leave your house to your family and the amount of inheritance you leave may be affected.

  • You need to have a minimum of 50% equity in your home.

  • If you are unable to keep up the repayments, your home may be at risk as we will be entitled to issue repossession proceedings.

How it works

Find out how our RIO mortgage works and if it may be suitable for your needs.

RIO mortgages FAQs

If you’re considering a RIO mortgage, you may have some questions. Here are some of our most frequently asked questions.

RIO mortgage product range

Our RIO mortgages are available for purchase and remortgage and for existing customers who wish to product switch or require additional borrowing.

Want to speak to one our team about a RIO mortgage?

Contact our dedicated New Business Team:

Ask us for a call back  Email us