Retirement Interest-Only Mortgages (RIO)

Securing a mortgage later in life can be challenging, but retirement interest-only (RIO) mortgages offer a practical solution for older homeowners.

What is a Retirement Interest-Only Mortgage?

RIO mortgages are designed for people aged 55 and over, allowing them to pay just the interest each month while the loan balance remains unchanged. The capital is repaid when the borrower passes away, moves into long-term care, or sells the property. Some RIOs have fixed terms, requiring repayment at a certain age or after a set period.

Unlike traditional mortgages, RIOs have more flexible affordability requirements. Borrowers only need to demonstrate they can manage the monthly interest payments.

Who Should Consider a Retirement Interest-Only Mortgage?

These mortgages are ideal for those aged 55 or older, particularly retirees with a stable income from pensions or other guaranteed sources. RIOs offer lower monthly payments compared to standard repayment mortgages, making them an attractive option for those with a fixed retirement income.

Can You Switch to a RIO Mortgage?

Yes, switching from a traditional repayment or interest-only mortgage to a RIO is possible. However, it’s important to seek professional advice to understand any fees or new affordability checks that may apply. A financial expert can help you determine if this switch makes sense for your situation and if it will save you money in the long term.

You must be at least 55 years old.
Your property must be in England, Wales, or mainland Scotland.
You need to afford the interest payments each month.
Your property should be worth at least £100,000.
You must have a secure income, such as a pension.

What my customers say about working with me

“When Mr and Mrs T decided to take out Equity Release, they were delighted with how easy the whole process would be for them. The decision to release equity from their property to assist their daughter in buying her own home was prompted by an advert in the Radio Times. After searching on the internet for an 'Equity Release expert near me,' the couple came across Kevin Woods, an equity release specialist who has worked in the financial industry for over 30 years and has helped people successfully access some of the money tied up in their properties to achieve their financial dreams and needs. Kevin was so helpful, knowledgeable and supportive and really easy to work with. The whole process was surprisingly straightforward and we are delighted to finally have the money in our bank to help our daughter to buy herself a new home. We would definitely recommend taking out Equity Release to anyone who is considering the idea and we would highly recommend the expertise and compassion of Kevin Woods as an expert advisor.”

Shirley Turner

What my customers say about working with me

“When Mr and Mrs T decided to take out Equity Release, they were delighted with how easy the whole process would be for them. The decision to release equity from their property to assist their daughter in buying her own home was prompted by an advert in the Radio Times. After searching on the internet for an 'Equity Release expert near me,' the couple came across Kevin Woods, an equity release specialist who has worked in the financial industry for over 30 years and has helped people successfully access some of the money tied up in their properties to achieve their financial dreams and needs. Kevin was so helpful, knowledgeable and supportive and really easy to work with. The whole process was surprisingly straightforward and we are delighted to finally have the money in our bank to help our daughter to buy herself a new home. We would definitely recommend taking out Equity Release to anyone who is considering the idea and we would highly recommend the expertise and compassion of Kevin Woods as an expert advisor.”

Shirley Turner

Why not get in touch and see how we can help?

Equity release could be the answer to some of your financial questions. If you would like to know more about it, and see if it could be the right option for you, please book an appointment or request a call-back

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Equity release will reduce the value of your estate and may also affect your entitlement to means-tested benefits. You should always think carefully before securing a loan against your home.

Unless you decide to go ahead with a plan, our service is completely free of charge, as our fixed advice fee of £1,295 is only payable on completion of a plan.

A lifetime mortgage is the most popular form of equity release, and is a loan secured against your home that’s typically repaid when you pass away or go into long-term care.

To understand the features and risks of a lifetime mortgage, please ask for a personalised illustration.