No impact on your credit score
October 2025
RIO's
Who it’s for
Homeowners around 55+ with steady later-life income who want to keep payments low by servicing interest only, including clearing an expiring interest-only mortgage or releasing funds without downsizing.
What we do
We’re a broker, not a lender. We compare 130+ lenders and broker-only ranges, check affordability against retirement income, and explain RIO vs equity release in plain English.
How it works
Free Advice → Soft search assessment (no score impact) → clear recommendation → we manage the application and liaise with lender/solicitor.
Why trust you
Award Winning Advice, FCA-regulated, CeMAP-qualified advisers with 2,500+ 5-star reviews; strong later-life lending expertise.
Next step: Get in touch
Retirement interest only mortgages (RIOs)
Quick take: A RIO lets eligible older borrowers pay interest only each month, with the capital typically repaid later from the sale of the property, on death, or when moving into long-term care. There’s no fixed end date like a normal mortgage, and affordability focuses on your retirement income. RIOs can be a practical alternative to equity release for the right client profile.
Why people consider a RIO
- Keep monthly payments lower by paying interest only
- Clear an expiring interest-only balance without downsizing
- Release funds for home improvements, family gifting, or debt consolidation (subject to advice & suitability)
Stay in the home you love, with an open-ended term linked to life events
Who RIOs are for
- Typical age: Lenders commonly accept applications from 55+ (some vary).
- Income: You must evidence lifelong affordability of the monthly interest from pensions, employment/self-employment in later life, investments or other acceptable sources. No roll-up of interest is allowed.
- Property & LTV: Loan-to-value caps are generally lower than standard residential; exact limits vary by lender and applicant profile.
- Credit profile: Mainstream and specialist lenders set different tolerances for historic blips, DMPs, or defaults; case-by-case underwriting applies. (Speak to us early if there’s adverse credit.)
Reality check: A RIO isn’t suitable if you can’t comfortably maintain interest payments for life. Missing payments risks arrears and repossession. If budget is tight or variable, a lifetime mortgage (equity release) with optional/no monthly payments might be more appropriate — with different pros/cons.
How a RIO works (at a glance)
- Monthly: You pay interest only.
- No fixed term: The mortgage usually ends on a life event (sale, death, or moving into long-term care).
- Capital repayment: The loan is normally repaid from the sale proceeds at that point.
- Affordability: Lenders test that you can afford the interest for life, including after the first borrower dies (where applicable)
RIO vs lifetime mortgage (equity release)
| Feature | RIO | Lifetime mortgage |
|---|---|---|
| Monthly payments | Required (interest only) | Optional (can be none) |
| Interest treatment | No roll-up; you service interest | Usually compounds (rolls up) if unpaid |
| Term | Open-ended to life event | Open-ended to life event |
| Affordability test | Yes (income-based) | Typically lighter income checks |
| Inheritance impact | Capital outstanding repaid on sale | Can grow over time if no payments |
Bottom line: If you have steady lifelong income, a RIO can control interest costs and protect equity versus roll-up. If cashflow is tight or uncertain, a lifetime mortgage may offer payment flexibility.
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Rates, fees & availability
Rates: Priced separately to mainstream residential and lifetime mortgages; they move with the market. Check current RIO ranges before you decide.
Fees: Expect application, valuation and legal fees; early repayment charges may apply depending on product.
0800 0320 316 or book a free video appointment:
Common use-cases we see
- Maturity of an old interest-only mortgage with no full repayment vehicle
- Refinancing debts at lower cost vs unsecured borrowing (subject to suitability)
- Home improvements or adaptations for later life
- Gifting to family (deposit boosts) while staying put
Note: Every case requires regulated advice under FCA rules and a full affordability review.
What to watch out for (risks)
- Payment risk: You must keep up with monthly interest — otherwise arrears and repossession risk.
- Rate risk: Product changes can affect future payments when a fixed/tracker period ends.
- Inheritance: Outstanding capital reduces the estate on sale.
- Valuation/LTV: Property values can limit how much you can borrow today or later.
- Change in circumstances: If income falls (e.g., bereavement, retirement stage), affordability must still hold. Lenders often test survivor income.
Our process (fast, clear, regulated)
- Initial Call: goals, budget, credit file, income sources
- Affordability & product fit: RIO vs lifetime mortgage vs standard options
- Recommendation: clear illustrations + backup plan
- Application & conveyancing: we liaise with lender/solicitor
- Aftercare: we monitor your rate/product end points