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We look at who can get retirement interest-only mortgages, what you can use the cash for and weigh up the pros and cons.
KEY INFORMATION
Remortgaging as you get older can be more difficult, especially as you near retirement. This is where a retirement interest-only (RIO) mortgage may help:
Retirement interest-only mortgages are aimed at older borrowers who struggle to get other types of mortgages due to their age. They can be used to let you take out a mortgage in later life or as an alternative to equity release.
RIO mortgages work in a similar way to standard interest-only mortgages because you’ll take out a loan against your property and make monthly payments to cover the interest.
But there are major differences: You don’t repay the capital until you die or go into long-term care – at this point your home will be sold. Also, it can be easier to get a retirement interest-only mortgage because you’ll only need to prove you can afford the monthly payments, not the capital as well.
If you’re taking out a joint retirement interest-only mortgage, the property will only be sold when you both either die or move into long-term care.
The best mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for you.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
Here’s an example of how retirement interest-only mortgages work:
Sarah and Peter own a house worth £400,000 and borrow 25% (£100,000). They take out a retirement interest-only mortgage at 5% and make monthly interest repayments of £417.
If they go into long-term care in 10 years’, their house will be sold to repay the £100,000 debt.
Assuming Sarah and Peter’s property is now worth £450,000, £350,000 would be left after the sale of their home. And they would have paid £50,036 in monthly interest repayments over the 10 years.
Both allow you to release equity from your home but there are key differences, including:
Yes, it’s possible to remortgage if you have a retirement interest-only mortgage. However, this will depend on your circumstances and you may need to do another affordability assessment if you’re switching lenders or want to increase the size of your mortgage. You should also check whether you need to pay any fees such as an early repayment charge if you remortgage.
If you have a retirement interest-only mortgage and want to remortgage, it’s a good idea to get fee-free advice from a mortgage broker.
There are two elements to repaying a retirement interest-only mortgage: the interest and the capital.
RIO mortgage lenders include:
However, you don’t need to do the legwork of finding retirement interest-only mortgage providers yourself. Our partners at Mortgage Advice Bureau offer free mortgage advice to find the best mortgage deal to suit your circumstances.
Once they have found the right mortgage deal for you, they’ll guide you through the application process from start to finish.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Retirement interest-only mortgage rates vary by lender and what’s available to you will depend on your circumstances. So the easiest way to find out what the best retirement interest-only mortgage rates available for you is to speak to a fee-free mortgage broker.
However, for an idea of what some RIO mortgage rates are available in Spring 2026, The Family Building Society offers a 5 year fixed rate RIO mortgage at 5.99% (max LTV 50%, scheme fees £999 with £500 cashback for remortgages). And The Cambridge Building Society offers a Retirement Interest Only Variable rate for the whole of the mortgage term at 5.19%.
While Nationwide RIO mortgage rates are no longer available for new customers. But if you already have a RIO mortgage with Nationwide and want to switch deals or borrow more, the lender’s deals include a 10 year fixed deal at 5.40%.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
Banks and building societies will assess a number of factors based on your personal circumstances before offering you a retirement interest-only mortgage, including:
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
The amount you can borrow on retirement interest-only mortgages depends on a number of factors including your income and the value of your home. However, for illustrative purposes, Legal & General will lend up to a maximum of 60% of your property value.
Retirement interest-only mortgage fees vary but you should allow for £1,000 to £3,000. Fees you may need to pay include an arrangement fee, mortgage valuation fee, and a completion fee. Plus you’ll need a solicitor to act for you too.
So it’s important to make sure you get the best deal for you. By speaking to a mortgage broker, they’ll help you compare different deals including the fees charged so that you can make the best choice for your circumstances.
The easiest way to apply for a retirement interest-only mortgage is by first speaking to a fee-free mortgage broker. They’ll go over some basic information including how much you would like to borrow and what for. They’ll go through your circumstances in detail and recommend a suitable product and help you with the application process and answer any questions you may have.
There are lots of reasons why people take out later life mortgages. These include:
Just like when you take out a standard mortgage, with retirement interest-only mortgages, you can choose from fixed or variable rate deals.
Also, some lenders offer the same interest rate for the duration of your retirement interest-only mortgage. Whereas other lenders offer a fixed or variable rate deals for a set period. You’ll then roll onto its standard variable rate unless you remortgage onto a new retirement interest-only mortgage deal.
Want to explore your retirement mortgage options? Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
Retirement interest-only mortgages are generally available to people aged 50-80 so provided you can meet the lender’s criteria including on income you can take out one of these mortgages if you’re retired.
If you’re in your 70s you may be able to get a retirement interest-only mortgage. But each lender has its own eligibility criteria so it’s a good idea to chat through your retirement interest-only mortgages options with a fee-free mortgage broker as they’ll be able to explain your options to you.
What happens when you move house with a retirement interest-only mortgage depends on the deal you have taken out. For example, some lenders may let you transfer the loan to the new property, although you may need to pay back some of the mortgage if your new home is worth less.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
HomeOwners Alliance Ltd is an Introducer Appointed Representative of Mortgage Advice Bureau (Derby) Limited which is authorised and regulated by the Financial Conduct Authority.
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of LifeSearch Limited, an Appointed Representative of LifeSearch Partners Ltd, authorised and regulated by the Financial Conduct Authority. (FRN: 656479).
Independent Financial Adviser service is provided by Unbiased, who match you to a fully regulated, independent financial adviser, with no charge to you for the referral.
Bridging Loan and specialist lending service provided by Chartwell Funding Limited, registered office 5 Badminton Court, Station Road, Yate, Bristol, BS37 5HZ, authorised and regulated by the Financial Conduct Authority (FRN: 458223). Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
