Retirement Interest-Only Mortgages

Interest-only, built for later life

Pay only the monthly interest, with independent, whole-of-market advice.

Calculate what you could borrow Call Our Team
The Basics

What is a retirement interest-only mortgage?

It works in a similar way to a standard mortgage, but it is designed for later life. You make a monthly interest payment, and the loan itself is repaid when your home is eventually sold. Here is what sets it apart.

You pay the monthly interest

Each month you pay the interest on the loan, rather than letting it build up. Because the interest does not roll up, the amount you owe stays level over time.

The loan is repaid on sale

The original amount you borrowed is repaid when your home is eventually sold, which is typically later in life. Until then, you stay in the home you know.

Based on what you can afford

A retirement interest-only mortgage is assessed on the income you can evidence, not just your age and the value of your home. That makes affordability the heart of the decision.

How Much Could You Borrow

Your borrowing is based on your income

As an indicative guide, the maximum you could borrow on a retirement interest-only mortgage 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. In other words, it considers whether the mortgage could still be afforded if one of you were no longer there. It is a sensible, real-world way to look at it.

Any figure is an indicative guide only and is subject to a full affordability assessment and our advice.

Try the RIO calculator
A worked example
Current joint annual income£60,000
If one of you passes away, the survivor would have£28,000
If the other passes away, the survivor would have£35,000
The calculation uses the lower survivor income£28,000
£126,000

Indicative maximum interest-only mortgage (£28,000 × 4.5). An indicative guide only, subject to a full affordability assessment and advice.

Know The Difference

Retirement interest-only, or a lifetime mortgage?

Retirement interest-only

You pay the interest each month.

  • You make a monthly interest payment.
  • The balance you owe stays level over time.
  • It is assessed mainly on the income you can afford.
  • The loan is repaid when your home is eventually sold.

Lifetime mortgage

No monthly payments are required.

  • No monthly payments are required.
  • The interest is added to the loan and rolls up over time.
  • It is assessed mainly on your age and your property value.
  • It carries a no-negative-equity guarantee.
Is It Right For You

When a retirement interest-only mortgage can help

An interest-only mortgage is ending

If you have an existing interest-only mortgage coming to the end of its term without a plan to repay the capital, a retirement interest-only mortgage can be one way to stay in your home. We will look at whether it fits your circumstances.

Keeping the balance from growing

Because you pay the interest each month, the amount you owe does not roll up. For people who want to keep what they owe level rather than letting it build, that certainty can matter a great deal.

Protecting more of your estate

Paying the interest rather than letting it compound can help preserve more of your home's value to pass on. For many families, leaving an inheritance is a priority worth planning for carefully.

Releasing money for a purpose

Some people use a retirement interest-only mortgage to fund home improvements, to gift to family, or to top up their income, while continuing to live in their own home. The right option depends entirely on your situation.

You prefer a regular payment

If you would rather make a predictable monthly payment than watch a balance grow, a retirement interest-only mortgage gives you that structure. We will help you weigh up whether it suits your budget over the long term.

You want whole-of-market advice

For retirement interest-only, term interest-only, and interest-only mortgages for the over-50s, we provide independent, whole-of-market advice. That means comparing across lenders to find what genuinely fits you.

"A retirement interest-only mortgage is not right for everyone. The real value is in honest, whole-of-market advice on whether it fits your circumstances."

Your Questions

Retirement interest-only mortgages, your questions answered

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 we advise 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.
Who can get a retirement interest-only mortgage?
They are designed for homeowners later in life, typically aged 55 and over, who can evidence enough income to afford the monthly interest. Eligibility and the amount available are always subject to a full affordability assessment and advice.
Do I have to make monthly payments?
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.
Speak to our team

Whole-of-market advice on retirement interest-only mortgages

For retirement interest-only, term interest-only, and interest-only mortgages for the over-50s, we provide independent, whole-of-market advice. Craig Oliver brings three decades in later-life lending and was named Best Individual Adviser at the 2018 Equity Release Awards. Your initial advice is at our cost. A fee of a maximum of £1,495 is only payable if your case completes.

Calculate what you could borrow Call Our Team (0113 403 5584)

A retirement interest-only mortgage is a loan secured against your home that requires monthly interest payments. If you proceed with a mortgage that requires payments to be made, your home may be repossessed if you do not keep up repayments on your mortgage. Any figures shown are an indicative guide only and are subject to a full affordability assessment and advice. Unless you decide to go ahead, our service is at our cost. Only if your case completes would our advice fee of a maximum of £1,495 be payable. Other lender & solicitor fees may apply.