All you need to know about Retirement Interest-Only (RIO) mortgages

Article

It’s been almost twenty years since the 2008 financial crash shook the world and wiped £90 billion off the value of the UK’s biggest companies.

As a result, borrowing became more difficult for those heading into their later years, with many lenders lowering their maximum lending age limits and reducing the provision of interest-only mortgages. However, since the Financial Conduct Authority (FCA) improved access to mortgage borrowing for those in retirement, the door reopened for everyone seeking finance; no matter their age.

  • What is a Retirement Interest Only (RIO) mortgage?

    RIO mortgages allow borrowers to pay a monthly interest payment with no set end date, as it will run until a ‘significant life event’, such as the borrower then moving into long-term care or passing away.

    It is at this point the RIO mortgage is repaid by the sale of the mortgaged property.

  • Why might a person want to borrower in later life?

    There are many reasons why older borrowers might consider a RIO mortgage:

    1. To purchase a retirement property which better suits their needs.

    2. To fund home improvements or extend their current property.

    3. To release equity to top-up their pension pot.

    4. To gift funds (equity) to a loved one to help them buy their own home.


    If you are interested in a RIO mortgage, we advise you speak to an independent financial adviser who will be able to explore your options and determine which may suit your circumstances best.

  • Is a RIO mortgage different to a standard residential mortgage?

    A RIO mortgage is similar to a standard residential mortgage, with two key differences:

    1. The loan is usually repaid when the borrower sells the house, moves into long-term care, or passes away.

    2. The borrower only has to prove they can afford the monthly interest repayments because the method of repayment the loan is already agreed.


    Essentially, the ‘retirement’ element of the mortgage means there is no defined date at which the capital has to be repaid.

More information

To learn more about our RIO mortgage product and lending into retirement more generally, visit our click here. Alternatively, you can book a mortgage appointment here.

Mortgage appointments can be undertaken in a local branch, by video call or by telephone. 

*all figures and data correct as of June 2026

YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.