Interest Only
Overview
Retirement Interest only (RIO) is a mortgage for life, with a balance that stays put.
Your client pays the interest each month and the balance stays the same, which means your client may never need another mortgage.
The loan is repaid from the sale of the home when your client dies or moves into long-term care.
Despite the name, Retirement Interest Only isn't only for retired clients. It's open from age 50 whether your client is working or retired, and the youngest joint borrower can be 45.
Client scenarios this could work well for:
Purchases and remortgages, including clients whose current term is ending
Capital raising, from home improvements to helping open the bank of Mum & Dad
Inheritance tax planning and wealth management
Those who need a bigger loan than equity release allows
Those who can pay the interest and want to avoid compound roll-up
"RIO suits clients who can pay the interest and want to stay in their home without a deadline. We focus on whether those payments are affordable from their pension and other income.
Head of Underwriting
No end date
Your client may never need another mortgage
Ages 50+
No maximum age, youngest joint borrower from 45
Up to 75%
Loan to value, subject to our lending criteria
A fit for my client?
For all the details about our Retirement Interest Only (RIO) mortgage, use our handy FAQs below
Who’s it for?
Working or retired clients aged 50+ (with the youngest borrower being 45) who can pay the interest from pension or other income, and want to stay in their home without a deadline to repay.
Client scenarios this could work well for:
- Purchases and remortgages, including clients whose current term is ending
- Capital raising, from home improvements to helping open the bank of Mum & Dad
- Inheritance tax planning and wealth management
- Those who need a bigger loan than equity release allows
- Those who can pay the interest and want to avoid compound roll-up
How it works
Each monthly payment covers the interest, so the balance doesn't grow. The loan is usually repaid from the sale of the home when your client passes or moves into long-term care.
For more details, please see our product guide below
Key criteria
- Minimum age: 50+
- Youngest joint borrower: 45+
- Maximum age at application:No maximum
- Term: No end date
- Minimum loan: £20,000
- Maximum loan: £2.5m
- Maximum LTV: 75%
- Affordability assessment: Yes
- Monthly payments: Interest
- Fixed rate options: 2, 5 and 10-year, plus fixed for life
What is the procuration (Proc) fee?
We have 3 proc fee options. Choose from:
- Our Standard Proc Fee of 0.55% gross upfront
- Our Ongoing Proc Fee of 0.55% gross upfront, plus an additional 0.13% gross every year thereafter, for up to 15 years
- (Fixed for Life products only), our Enhanced Proc Fee of 1.10% gross upfront
Our Ongoing Proc Fee requires an annual customer care call.
For more information, see our handy guides to help you out
Not quite the right fit?
If Retirement Interest Only (RIO) doesn't suit your clients' needs or plans for the future, one of these solutions might?
All mortgagesRelated products
Product | Fixed Rate Term | Interest Rate | Max LTV | Reversion Rate | Product Fee | APRC | |
|---|---|---|---|---|---|---|---|