Notices
  • The Capital 90 (1) 1.06% AER - is now on general sale and can be applied for exclusively online. £20,000 minimum deposit. You can add funds to the account until 3pm, 26 November 2021, after this no additions will be allowed. Find out more
  • Premium Saver (4)  0.65% AER - is now on general sale and can be applied for exclusively online. £10,000 minimum deposit. You can add funds to the account until 3pm, 5 November 2021, after this no additions will be allowed. Find out more
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Retirement Interest-Only (RIO) mortgage 

Our RIO mortgage is 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 is a Retirement Interest-Only mortgage?

Our Retirement Interest Only (RIO) mortgage offers an alternative way of borrowing in later life. RIO mortgages come with monthly interest payments and are only repaid to us until either you move into long-term care or pass away. Your affordability is assessed for a RIO mortgage to ensure you can meet the monthly interest payments.

If you are over 65 and are struggling to get a standard residential mortgage or want the chance to reduce your current monthly mortgage repayments, our RIO mortgage could be ideal for you.

How does the RIO mortgage work?

Unlike Lifetime mortgages, our RIO mortgage does not roll up interest and there is no set end date to repay the balance. Each month you make payments which cover the interest. To give you peace of mind, we calculate your monthly payments so that when the time comes for you to repay the capital, it is only the amount you borrowed which needs to be repaid.

Is a RIO mortgage right for me?

There are many advantages of taking out a RIO mortgage, such as cheaper monthly repayments and being able to stay in the home you love. There are also other factors to consider with a RIO mortgage.

Advantages of a RIO 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.

  • 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 as you like until the life event occurs.

  • Our RIO mortgage can be used if your current Interest-Only mortgage is coming to an end and you are unable to repay the capital balance, or you aren’t ready to downsize, or move into retirement accommodation.
  • You can also use a RIO mortgage if you want to release equity to make some home improvements, enhance your retirement lifestyle or help loved ones out with a financial boost.

Disadvantages:

  • A RIO mortgage is an Interest-Only mortgage so you will not be paying off any of the capital of the mortgage.

  • You'll need to be able to pay the interest payment each month until the end of the term.

  • There’s 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'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.


For more information read our RIO mortgage frequently asked questions.

RIO mortgage FAQs

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

RIO mortgage

Our RIO mortgage is 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