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Retirement interest-only mortgages
A lump sum that you don’t have to repay by a fixed date
Retirement interest-only mortgages (or RIO mortgages for short) are accessible to people over 55. You effectively take out a loan secured against your home and you pay the interest each month, which means that the amount you owe doesn’t increase over time.
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Want to speak to a mortgage adviser? Speaking to an experienced adviser can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with an independent mortgage adviser at Fidelius. Speak with a qualified, FCA-regulated, independent mortgage adviser you can trust. Rated 4.7/5 on VouchedFor from over 2,600 reviews.
Retirement interest-only mortgage basics
In our RIO mortgage basics guides, we explain what retirement interest-only mortgages are, how they work, how they differ from equity release and how you can use a RIO mortgage to pay for home improvements or other expenses.
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Want to speak to a mortgage adviser? Speaking to an experienced adviser can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with an independent mortgage adviser at Fidelius. Speak with a qualified, FCA-regulated, independent mortgage adviser you can trust. Rated 4.7/5 on VouchedFor from over 2,600 reviews.
Additional reading
If you’re considering taking out a retirement interest-only mortgage, you can read through these additional resources to make an informed decision.
Frequently asked questions about retirement interest-only mortgages
What happens when a retirement interest-only mortgage matures?
Unless you have been making overpayments to purposely reduce the balance of your mortgage, your monthly payments have been paying only the interest and have not reduced your loan balance. Retirement interest-only mortgages enable you to carry on making interest payments indefinitely, with the loan paid back only when you die or move out. By contrast, a standard interest only mortgage finishes on a specific date and you must repay the capital you owe on this date.
How does a lifetime mortgage work?
A lifetime mortgage is a type of equity release plan which enables you to unlock some of your property wealth whilst continuing to live in your home. Unlike a standard mortgage and a retirement interest-only mortgage, with a lifetime mortgage you do not need to make any monthly payments. Your debt only has to be repaid when you die or go into long term care.
Can I remortgage if I have a retirement interest-only mortgage?
Yes, you may be able to remortgage a retirement interest-only mortgage. However, you may face an affordability assessment, particularly if you’re changing lenders or looking to change the size of your mortgage. So it depends on what you’re looking for and your personal circumstances. It’s a good idea to seek advice if you’re not sure which option is best for you.