Is Retirement Interest Only (RIO) right for you?

Because you only pay off the interest on this type of mortgage your payments can be lower than a typical mortgage.

Unlike regular interest only mortgages, this mortgage doesn’t have a fixed end date to repay the balance. It could be right for you if you want to keep your payments lower than a standard mortgage and you're happy knowing that the loan will be repaid by the sale of your home when the last borrower moves into long-term care or dies.

Things you need to know

  • there are no valuation fees, product or advice fees with this mortgage.
  • the RIO mortgage is only available for standard ownership. It's not an option for things like shared ownership or Right to Buy.
  • you can overpay by up to 10% of the total amount of the loan each year without incurring an Early Repayment Charge.
  • it’s also not available if you live on the Isle of Man, Scilly Isles or Channel Islands.

Can I apply for a Retirement Interest Only (RIO) Mortgage?

  • current Nationwide mortgage holders can apply from 55 up until their 95th birthday.
  • non-Nationwide mortgage holders can apply from 55 up until their 85th birthday.
  • you must be receiving either state, workplace or private pensions.
  • your property needs to be your main residence.

If you’re ready to apply?

Please call us on 0800 146 100
Monday to Friday 8am-8pm.
Saturday 9am-5pm.
Closed Sundays and Bank holidays.

After a quick Eligibility and Affordability check, we’ll then be able to arrange an appointment for you with one of our Later Life Mortgage Consultants.

To help with these conversations, it would be great if you have to hand:


  • income details (from state and private pension income including your providers name)
  • any pension dependency clause information your pension may contain (if a joint application)
  • buildings insurance information
  • any other credit commitments you may have eg. Credit Cards, Personal loans
  • information on any savings, investments or other assets that you have
  • information on your tax position
  • details of any life insurance policies you have

You may also be interested in...

Retirement Capital and Interest mortgage

With this type of mortgage, the money you borrow is paid back, along with interest, each month over a fixed term, just like you would with a standard mortgage. The difference here is that unlike a standard mortgage, you can borrow past the age of 75.

Lifetime mortgage

With this type of mortgage there are no monthly payments to make every month, unless you choose to. The capital and interest will not be repaid until the last remaining borrower either moves into long-term care or dies. The term of this mortgage is not fixed. The Lifetime Mortgage could be ideal if you want to release some equity and if you would prefer not to make monthly repayments.

Think carefully before securing other debts against your home. Your mortgage is secured on your home, which you could lose if you do not keep up your mortgage payments. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.