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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.
Retirement interest-only mortgages, often called RIO mortgages, are designed for older borrowers who want to borrow in later life while paying only the interest each month.
KEY INFORMATION
Here’s an example of how a retirement interest-only mortgage could work.
| Property value | £400,000 |
| RIO mortgage | £100,000 |
| Interest rate | 5% |
| Monthly interest payment | £417 |
| Mortgage balance after 10 years | £100,000 |
| Total interest paid over 10 years | £50,000* |
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.
Bear in mind that this only shows your monthly interest payments. It doesn’t tell you how much you could borrow, whether you’ll qualify for a RIO mortgage or take into account any fees.
Eligibility criteria vary between lenders, but you’ll usually need to:
RIO mortgages can be particularly useful for some people who are approaching the end of an existing interest-only mortgage and don’t have enough money to repay the outstanding balance. You may be able to use a retirement interest-only mortgage to repay your existing mortgage, provided you meet the new lender’s affordability and eligibility requirements.
Retirement interest-only mortgage rates vary between lenders and the rate available to you will depend on factors including your age, income, property and loan-to-value (LTV). Fixed and variable-rate RIO mortgages are available.
When comparing retirement interest-only mortgages, don’t look at the interest rate alone. Check the product fees, maximum LTV and other lending criteria too.
RIO mortgages are offered by a smaller number of lenders than standard residential mortgages, including banks and building societies. Availability and eligibility criteria vary considerably between lenders.
Some of the lenders currently offering RIO mortgages include:
| RIO mortgage lender | Minimum age | Maximum LTV | Key point |
|---|---|---|---|
| Leeds Building Society | 55 | 55% | Must be 55-80 to apply |
| Legal & General | 55 | 60% | Offers a fixed interest rate for the life of its RIO mortgage. |
| LiveMore | 50 (for joint borrowing, youngest can be minimum 45) | 75% | No maximum age and no specified mortgage end date. |
| Nottingham Building Society | 55 | 60% | Allows capital raising, subject to its lending criteria. |
| Scottish Building Society | 55 | 60% | No maximum age. |
These are just a selection of lenders and you don’t need to approach RIO mortgage lenders individually. A mortgage broker can compare available deals and lender criteria to find options that may suit your circumstances.
Yes, depending on your circumstances. A RIO mortgage isn’t the only type of interest-only mortgage available to older borrowers. Some lenders offer standard interest-only mortgages that can continue into retirement.
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.
Both RIO mortgages and lifetime mortgages, which are a type of equity release, allow you to borrow against your home in later life, but there are important differences in how they work.
| RIO mortgage | Lifetime mortgage | |
|---|---|---|
| Monthly payments | You usually pay the interest each month | Payments can be optional, depending on the product |
| Interest | Usually paid monthly | Can be added to the loan (rolled up) |
| Affordability check | Yes – you need to show you can afford the monthly interest payments | A roll-up lifetime mortgage doesn’t usually require you to prove you can afford monthly payments |
| Can the debt grow? | The amount borrowed won’t increase if you pay all the interest due and don’t add further borrowing or fees | Yes, if interest is rolled up and added to the loan |
| When is it repaid? | Usually when the property is sold, often after you die or move permanently into long-term care | Usually when the property is sold, often after you die or move permanently into long-term care |
| Impact on inheritance | The outstanding mortgage reduces the value of your estate | The outstanding mortgage reduces your estate; if interest is rolled up, the amount owed can increase over time |
| Advice | Mortgage advice | Specialist equity release advice is required |
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.
| Advantages | Disadvantages |
|---|---|
| Borrow in later life: RIO mortgages are designed for older borrowers and can provide an option when a standard mortgage may not be suitable. | Affordability checks: You’ll need to show you can afford the monthly interest payments, including in retirement. |
| Your mortgage balance doesn’t usually increase: If you make all the required interest payments, the amount you’ve borrowed won’t increase. | You still owe the capital: Paying the interest each month doesn’t reduce the amount you originally borrowed. |
| Stay in your home: A RIO mortgage could allow you to release money from your property without needing to downsize. | Reduced inheritance: The outstanding mortgage will usually be repaid from the sale of your home, reducing the amount left in your estate. |
How much you can borrow with a RIO mortgage depends on your income, affordability, age, property value and the lender’s maximum LTV. You’ll need to demonstrate that you can afford the monthly interest payments, including in retirement.
Maximum LTVs vary considerably between lenders. For example, Leeds Building Society retirement interest-only mortgages have a maximum LTV of 55%, while with LiveMore the maximum LTV is 75%. Getting mortgage advice can be particularly useful because lenders assess affordability and maximum borrowing differently.
Fees vary between RIO mortgages and may include a product or arrangement fee, mortgage valuation fee and legal costs. Some deals may offer free valuations or other incentives, so compare the total cost rather than looking at the interest rate alone.
A mortgage broker can help you compare different deals, including the fees charged, so you can find the right option for your circumstances.
You can apply for a RIO mortgage directly with some lenders or through a fee-free mortgage broker. As lender criteria vary, a broker can compare your options, recommend the right mortgage and help you through the application process.
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.
Some lenders offer the same interest rate for the duration of the RIO mortgage, while others offer fixed or variable-rate deals for a set period. At the end of the deal, you may move onto the lender’s standard variable rate unless you remortgage to a new 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.
Yes, you may be able to get an interest-only mortgage when you’re retired. Retirement interest-only (RIO) mortgages are specifically designed for older borrowers and can be available whether you’re working or retired. You’ll need to meet the lender’s criteria and show you can afford the monthly interest payments, including from income you’ll receive in retirement.
Yes, it’s possible to get an interest-only mortgage if you’re over 70. Some RIO mortgage lenders have a maximum age for applying, while others don’t.
You’ll still need to meet the lender’s affordability and other eligibility requirements, so the options available will depend on your circumstances. It’s a good idea to speak to a fee-free mortgage broker as they’ll be able to explain your options to you.
Yes, you may be able to move house with a RIO mortgage, but it will depend on your lender and mortgage terms. Some lenders may allow you to transfer the mortgage to your new property. If your new home is worth less, you may need to repay part of the mortgage to remain within the lender’s maximum LTV.
Retirement interest-only mortgages are still a relatively small part of the later-life mortgage market. According to the latest UK Finance figures, 323 new RIO mortgages were taken out in Q2 2026, up 5.9% compared with a year earlier. The value of RIO lending increased by 24% to £31 million over the same period.
RIO mortgages are available from a relatively small number of banks and building societies. Current providers include Leeds Building Society, Legal & General, LiveMore, Nottingham Building Society and Scottish Building Society.
Minimum ages, maximum LTVs and other lending criteria vary, so compare providers and eligibility requirements before applying. An easy way to do this is by speaking to a fee-free mortgage broker.
Retirement interest-only mortgage rates vary by lender, loan-to-value (LTV) and the type of deal you choose.
A mortgage adviser can compare deals from different lenders, including rates, fees and eligibility criteria, to help find the right option for your circumstances.
How much you can borrow with a RIO mortgage depends on factors including your income, affordability, age, property value and the lender’s maximum loan-to-value (LTV).
You’ll need to show you can afford the monthly interest payments, including in retirement. As affordability criteria vary between lenders, a mortgage adviser can compare your options and help establish which lenders may offer you the amount you need.
You may be able to repay some or all of a RIO mortgage early, but this depends on your deal. It’s important to check your mortgage terms before making additional payments.
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