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.

Features and benefits

  • There are no valuation fees, product or advice fees with this mortgage.
  • You have the flexibility to overpay up to 10% of the loan amount each year without incurring an Early Repayment Charge (ERC).
  • You can borrow up to £500,000.

You can apply for a Retirement Interest Only mortgage if:

  • You're an existing Nationwide mortgage holder aged 55 to 94, or
  • You’re a non-Nationwide mortgage holder, aged 55 to 84.
  • You're applying for a mortgage on your main residence only.
  • You are receiving either a state, workplace or private pension.

You cannot apply for a Retirement Interest Only mortgage if:

  • You live on the Isle of Man, Scilly Isles, or the Channel Islands.
  • You are looking for things like shared ownership or Right to Buy. It is only available for standard ownership.


Ready to find out more?

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:

  • details of your pension income – if you have a partner, this should include what they will get if you die before them
  • details of any borrowing, such as loans or credit cards
  • what you pay towards buildings insurance and council tax.

Over the phone

Make an appointment with one of our later life mortgage consultants. They’ll talk through your options and make recommendations based on your individual needs.

Monday to Friday, 9am to 5pm.
Saturday 8:30am to 4pm.
Closed Sundays and bank holidays.

0800 146 100

Attend our online Later Life mortgage event

Find out more about borrowing in later life. We’re running an online Mortgages for Later Life event on the 25 February 2021. It’s free to attend – just complete the registration form.

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.