Retirement Interest Only Mortgages |
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Retirement Interest Only Mortgages

Find out more about retirement-interest only mortgages

Older borrowers now have more choice when it comes to finding a later life or retirement interest only mortgage. Our preferred mortgage broker can help to find you a lender that will accept your application.


Get expert advice from an award-winning mortgage broker

  • Enhance your retirement income with a RIO mortgage
  • Fund home improvements or adaptations needed for later life
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Are you finding it difficult to get a standard residential mortgage? Or maybe you’re looking for potentially cheaper monthly mortgage repayments? Then, a Retirement-Interest only mortgage (RIO) could be just what you’re looking for! Mortgage Advice Bureau's expert advisers are always available to help you decide whether a RIO is right for you. Your home may be repossessed if you do not keep up repayments on your mortgage.


Mortgage Advice Bureau offers fee free mortgage advice for Moneyfacts visitors that call on 0808 149 9177 or email If you contact Mortgage Advice Bureau outside of these channels you may incur a fee of up to 1%.


Credit will be secured by a mortgage on your property.


Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing.

What are Retirement Interest-Only (RIO) mortgages?

If you're approaching retirement and still have an interest-only mortgage you're not sure how you'll pay off, you now have another option to consider – taking out an interest-only retirement (RIO) mortgage. A possible alternative to equity release and a way to clear your current mortgage debt without needing to downsize, a RIO mortgage works in a similar way to traditional interest-only deals and can be very helpful in obtaining a mortgage in retirement. So, is now the time to consider one?

RIO mortgages allow homeowners to remortgage their existing loan under similar terms to their current arrangement, meaning they only need to repay the interest for the term of the loan – which can be a lot more achievable for those on a pension income. Then, when the borrower dies or goes into care, the property will be sold, and the mortgage repaid with any additional value in the house forming part of your estate.

However, even within this area, providers are becoming increasingly flexible. In the time since such loans have been widely available the regulator relaxed the rules and separated RIO mortgages from equity release in 2018, and widened the appeal of such loans in the process. Numerous providers have got in on the action and are offering a wide range of options, with some allowing borrowers to repay part of the capital as well (thereby leaving more of an inheritance to loved ones) and others offering set repayment dates.

Many big-name lenders now offer these retirement mortgages, giving peace of mind to those who would prefer to borrow from a high street bank, building society or mutual.

Ultimately, RIO mortgages could be a great option for those unsure how they're going to repay their interest-only mortgage debt, but as with any mortgage decision, it’s important to get impartial expert advice from a financial advisor before committing yourself.

Pros and Cons

  • Your monthly repayments are normally cheaper than with alternative repayment mortgages.
  • You can stay in your home with the property being sold after you die or move into long-term care to repay the loan.
  • Some deals include the ability to repay some capital too, enabling you to leave an inheritance to loved ones.
  • This type of mortgage removes the worry of repaying the capital sum owed in retirement.
  • The mortgage lender will have the right to repossess and sell the property when you move into care or die.
  • It may be difficult to change mortgage provider or move home.
  • You are not protected from short-term dips in house prices.
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