Retirement interest only mortgage calculator
See an indicative guide to the maximum Retirement Interest-Only mortgage your income could support. This is a guide only, not a guarantee or an offer of a loan.
See what you could borrow with interest only
See an indicative guide to the maximum Retirement Interest-Only mortgage your income could support. This is a guide only, not a guarantee or an offer of a loan.
Lenders check the mortgage could still be afforded if one of you were to pass away, so please tell us the income each of you would be left with.
Enter the rate you have been quoted or expect to pay. Your actual rate depends on your circumstances, the lender, and a full affordability assessment.
RIO mortgages are interest-only: you pay the interest each month and the loan is repaid later (for example when the home is sold). This is an illustration, not a quote.
Why this number?
Get your personalised illustration from Craig
Enter your details and Craig will prepare a personalised illustration based on your actual circumstances. This figure is indicative only. A full affordability assessment will confirm exactly what you could borrow.
A Retirement Interest-Only (RIO) mortgage is a loan secured against your home on which you pay the interest each month. This figure is an indicative guide only and is not a guarantee of how much you could borrow. The amount available is based on your income and is subject to a full affordability assessment and advice. Your home maybe repossessed if you do not keep up repayments on your mortgage.
This estimate is provided for illustrative purposes only and does not constitute regulated financial advice.
How the RIO calculator works
Retirement Interest-Only borrowing is assessed on your income, not the value of your home. Lenders typically lend up to 4.5 times your annual retirement income. For two applicants, they focus on whether the mortgage could still be afforded if one of you were to pass away, so we base the figure on the lower of your two survivor incomes. Your actual figure depends on a full affordability assessment, your credit history, and which lender our team selects from across the market.
Why it is based on income, not property value
A Retirement Interest-Only mortgage is assessed on affordability, not equity. Lenders need to be confident you can meet the monthly interest payments throughout the life of the loan, so they focus on your income rather than how much your home is worth. The property is still used as security, and the loan is typically repaid when you sell, move into long-term care, or pass away.
What types of income can count?
The most common qualifying income is pension income (state pension, defined benefit, annuity, or drawdown). Depending on the lender, rental income, investment income, business income, and income from other properties may also be considered. The specific income types accepted vary between lenders, which is why a whole-of-market search matters.
How it differs from a lifetime mortgage
A lifetime mortgage is based on age and property value, not income. The interest is usually rolled up into the loan rather than paid monthly, so there is no required monthly payment, and every lifetime mortgage carries a no-negative-equity guarantee. A RIO mortgage requires you to pay the interest each month, just like a standard interest-only mortgage. Your home may be repossessed if payments are not maintained. Compare the two in lifetime mortgage or RIO, or use our lifetime mortgage calculator.
Why it is an estimate
This figure is an indicative guide only and is not a guarantee of how much you could borrow. The amount available is based on your income and is subject to a full affordability assessment and advice. Read more about retirement interest only mortgages.
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Understanding your estimate
What is a retirement interest-only (RIO) mortgage?
A retirement interest-only (RIO) mortgage lets you borrow against your home and pay only the monthly interest each month, so the amount you owe stays level rather than growing over time. The original loan is repaid when your home is eventually sold. It is assessed on the income you can comfortably afford, and Search Equity Release advises on it across the whole of the market.
How much can I borrow on a retirement interest-only mortgage?
As an indicative guide, the maximum is based on the income you can evidence, up to around 4.5 times that income. For couples, the figure is based on the lower of the two survivor incomes. Any figure is an indicative guide only and is subject to a full affordability assessment and our advice.
What is the difference between a RIO mortgage and a lifetime mortgage?
With a retirement interest-only mortgage you make monthly interest payments and the balance you owe stays level, and it is assessed mainly on your income. With a lifetime mortgage there are no required monthly payments, the interest is added to the loan and rolls up over time, and it is assessed mainly on your age and the value of your property. A lifetime mortgage also carries a no-negative-equity guarantee.
Do I have to make monthly payments on a retirement interest-only mortgage?
Yes. With a retirement interest-only mortgage you pay the monthly interest each month. As with any mortgage that requires payments, your home may be repossessed if you do not keep up repayments on your mortgage.
What happens after I submit my details?
Our team will call you personally to talk through your situation. The initial conversation is completely free and there is no pressure or obligation to proceed. They will ask a few questions about your situation, explain your options in plain English, and give you an honest assessment of whether equity release could work for you. If it is not right for you, we will tell you that too. You stay in control of every decision throughout.
What does equity release cost?
The initial conversation is free. Our advice fee is a maximum of £1,495 and is only payable if your case completes. Other lender and solicitor fees may apply, and on a lifetime mortgage the interest is the main cost over time.
Prefer to just chat first?
Ask Bruno any question about equity release, or call our team directly for a free conversation about your options.