Retirement Interest Only Mortgage (RIO)
A lump sum from your home that you don’t have to repay by a fixed date.
Interest only mortgage for later life
The Retirement Interest Only Mortgage (sometimes called a ‘RIO Mortgage’) is available to people over 55. It’s a loan secured against your home. You pay the interest each month, which means the amount you owe doesn’t increase over time.

You can use it for most purposes (including paying off an existing mortgage). What’s more, you don’t have to repay the loan until you, or the last remaining borrower, die or move permanently into long- term care.’

Our Retirement Interest Only Mortgage can only be taken out with a mortgage adviser.
Use the money however you want
You can spend it in all sorts of ways. This includes home and lifestyle improvements, helping children buy their first property or supporting grandchildren with their education.

If you give the money away, the recipient may need to pay inheritance tax in the future. There are few restrictions on how you spend the money. You must pay off any existing mortgage.
Wealth Warning
As a last resort, your home may be repossessed if you do not keep up with payments.
  • Interest is payable each month
    The interest due is payable by you in full each month. In this way, you always know how much you owe

  • There’s no fixed term
    You don’t have to repay the loan on a specific date. It’s repaid on your death or when you move permanently into long–term care. At this point, the property is sold and the loan repaid. If you take out the loan with someone else, the property isn’t sold until both of you have either died or moved permanently into long–term care

  • The interest rate doesn’t vary
    The interest rate is fixed throughout so there are no surprises. You’ll pay the same amount every month

  • You can pay more to reduce how much you owe
    If you want to pay off more than the interest due each month, you can make overpayments from time to time. In this way, you’ll reduce how much you owe even further. So long as any overpayments don’t exceed our limits, there are no charges

  • You can still move home
    The new home is subject to our usual lending criteria. In other words, assuming it’s a property we would be happy to lend against, you can move home.