Introducing Retirement Interest Only

Retirement Interest Only often called RIO is designed for individuals who may becoming to end of term on a traditional mortgage or simply need a new mortgage. With a RIO, a lender will consider multiple sources of income including pensions, investment income, rental income and in some circumstances your employed or self-employed income.

What are Retirement Interest Only mortgages? 

This relatively new type of mortgage is called Retirement Interest Only or RIO. This type of mortgage is interest only with no set end date and is designed to help borrowers who: 

  • Currently have an interest only mortgage coming to end of term and can continue to afford making monthly interest only payments.
  • Want an interest only mortgage with affordability based on their retirement and investment income rather than salaries.
  • Need an interest only mortgage with a term beyond the age of 75.  


Retirement Interest Only eligibility  

These eligibility guidelines are not absolute, so please always asked for a personalised illustration: 

  • The borrower is usually aged between 55 and 80 years old.
  • Maximum loan to value is usually 75%.
  • No minimum equity required with some lenders. 
  • Affordability is based on multiple income streams that can include current and future this can include employed/self-employed income, investment, and rental income.

Alternatives to Retirement Interest Only 

Retirement Interest Only is only available with a limited number of lenders and the lending criteria is very specific.  

If you have approached the High Street lenders, the standard answer is ‘computer says no’. Fortunately, some of the regional building societies take a more positive approach to later life lending. 

For example, we recently successfully completed an interest only mortgage for somebody who was still working at the age of 75 and we were able to arrange a new mortgage term of 15 years. 


How does retirement interest only mortgages work?

We will help you choose the right product and provider, we will explain your options, in jargon free plain English, so you can make an informed decision. Here is the process, from getting advice to receiving the money:

Step 1: Get advice 

Speak to one of our Partners who is qualified to offer advice on equity release and later life mortgage products. 

We will take time to understand your mortgage need and aspirations and to make sure equity release is right for you, we may be able to recommend another type of mortgage that works better for you. 

We will then email you a personalised mortgage illustration and send you an information pack in the post. We’ll spend all the time it takes, so you fully understand the product, so it works for you now and in the future, should your circumstances change. 

Step 2: Valuation & Offer 

Once you give us the green light, we will submit your application online to the lender. 

At this point, you need to instruct a solicitor to act on your behalf. We work closely with Equilaw and can instruct this firm on your behalf if required. 

The lender will arrange a FREE valuation of your home. Once this has been completed and your application approved, the lender will send the offer to you and your solicitor. 

We have arranged that Equilaw will send a locum solicitor to your home to sign the mortgage documents at no additional cost, a date for completing the mortgage can be scheduled. 

Step 3:  Receiving money 

We’ll make sure the mortgage offer is exactly as we described and then work with your solicitor through to completion. 

Your solicitor will repay any existing mortgage on your property and then send the balance of the funds to you. 

If you have decided to make monthly interest payments on you mortgage, we’ll explain the options available to you. 

You can choose the have a lump sum on completion or a drawdown facility or a combination of both.  

We will always be available to advise you in the months and years to come, should your circumstance change. 

How long does it take to arrange a retirement interest only mortgage?

The length of time it takes to complete an equity release mortgage will depend on the provider we have recommended. Here is a simple guide to the timescales involved: 

  • Same day decision in principle. 
  • Valuation instructed within 24 hours.
  • Mortgage offer issued within 48 hours of the lender receiving the valuation. 
  • Legal completion usually within 4 to 6 weeks from instruction.  

Get independent equity release advice now

Our equity release specialists are available now to explain your options.

To request a call-back, get in touch via our contact us page.

0800 999 3339

Monday to Saturday
9:00am – 8:00pm

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