Cambridge enters the retirement mortgage market |
MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 19/07/2019

Cambridge Building Society has launched its first retirement interest-only (RIO) mortgage .

What is a retirement interest-only mortgage?

RIO mortgages allow older borrowers, over the age of 55, to borrow money against their home on an interest-only basis. This means they do not pay back the original amount borrowed to them; they only cover the interest charged. These mortgages continue until the property is sold, the borrower dies or moves into residential care.

Overview of the Cambridge RIO mortgage

This RIO mortgage comes at a rate of 3.39% variable for the term of the mortgage. There is a maximum loan-to-value of 55%. The product fee is £500, and valuation is free. Borrowers can also choose to overpay without penalty.

Borrowers must apply directly to Cambridge Building Society for this mortgage and it is open to both existing members and new customers.

It can be used by those looking to find alternative borrowing at the end of their current mortgage term or those wanting to release equity from their property.

The Cambridge Building Society RIO mortgage is only available on residential properties located in Bedfordshire, Buckinghamshire, Cambridgeshire, Essex, Hertfordshire, Norfolk, Northamptonshire and Suffolk, but if you are an existing borrower moving away from the East Anglian region, the lender can still help you buy a new home anywhere in England and Wales.

What other providers offer RIO mortgages?

  • Bath Building Society
  • Beverley Building Society
  • Buckinghamshire Building Society
  • Family Building Society
  • Hanley Economic Building Society
  • Hodge Lifetime
  • Ipswich Building Society
  • Leeds Building Society
  • Mansfield Building Society
  • Marsden Building Society
  • Newbury Building Society
  • Nottingham Building Society.

More information about retirement interest-only mortgages is available in our guide. You can also speak to our preferred mortgage broker for further advice about lending in retirement.


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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