Retirement interest-only mortgages

Sometimes getting a mortgage later in life can be difficult, but it doesn’t have to be, which is why we have expert advisers on hand to help anyone over 55 obtain a mortgage which suits their needs and circumstances.

What exactly is a retirement interest-only mortgage?

A retirement interest-only mortgage or RIO is similar to a conventional interest-only mortgage where you are only required to maintain the interest payments on the loan on a monthly basis. As long as the payments are maintained the balance will remain the same.

With most RIO mortgages, you are only required to repay the loan if you sell your property, move into long term care or die. But some retirement interest-only mortgages carry a fixed term like with regular mortgages, meaning the loan must be repaid when you reach a certain age or after a set number of years.

RIO’s have been specifically designed for people over the age of 55.

Advantages and disadvantages of a retirement interest-only mortgage compared to a Lifetime Mortgage


  • There is the potential to borrow more than a lifetime mortgage especially when you are between 55 and 65
  • Interest-only monthly payments can be lower than with a repayment mortgage
  • The interest rates can be lower than that of a lifetime mortgage
  • The inheritance you leave is likely to be higher than if you went with an equity release plan where there are no monthly payments and the interest is rolled up
  • The mortgage can be repaid after any discounting period which can give greater flexibility


  • Your home is at risk of being repossessed if you do not keep up with your monthly payments
  • You will not repay the mortgage. The mortgage is repaid when the property is sold, either though downsizing or the last surviving applicant leaving the property
  • You need to make monthly repayments which can change depending on the bank rate of England and/or the mortgage lenders own criteria
  • You will still need to pass affordability checks, to make sure the lowest earner can afford the monthly interest payments and maintain the property
  • The amount you are allowed to borrow depends on your guaranteed earnings such as a pension

Why not speak to one of out advisers:

Find out today if you qualify by speaking to one of our expert advisers.

Just call Freephone: 0800 411 8668

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but a typical fee will be £595

To speak to one of our dedicated specialists why not arrange your free, initial no-obligation mortgage consultation? Call freephone 0800 411 6050

* Not all forms of mortgage are regulated by the Financial Conduct Authority.