Retirement Interest-Only Mortgages
A retirement interest-only mortgage, or RIO, lets you borrow against your home in later life and pay only the interest each month, with no fixed date when the loan must be repaid. It is usually repaid from the sale of the home when the last borrower dies or moves into long-term care. Because you pay the interest, the balance does not grow.
- How a RIO works and who it suits
- Lender ages, loan to value and loan sizes
- Proving affordability for life, on pension income
- RIO compared with a lifetime mortgage
broad range of UK lenders
Momentum Financial Services Ltd · FRN 1011740
a real adviser, start to finish
rates, fees & total borrowing
Tell Us About Your RIO Plans
Share your ages, the property value, any current mortgage, your pension income and what you need the money for. We will tell you whether a RIO is realistic and which lenders fit, with advice built around your circumstances rather than headline rates.
Enquiry Form
Tell us about your situation and we'll get back to you with tailored advice.
How a RIO works
Interest only, for life. You pay the interest each month and the capital stays the same. There is no term end date, so there is no point at which the lender can ask for the loan back while you live in the home and keep up the payments.
Repaid from the home. The loan is usually repaid when the last borrower dies or moves permanently into long-term care, typically from the sale of the property. The Vernon Building Society, for example, asks for repayment within six months of the property being permanently vacated.
Affordability for life. Because you must keep paying the interest, the lender checks you can afford it from your retirement income, now and in future. For couples, lenders currently also check whether a surviving partner could afford the payments alone.
Who it suits. RIO often suits someone whose interest-only mortgage is ending without the capital to repay it, or who wants to borrow in later life while keeping the balance level and leaving equity in the home.
A RIO keeps the debt at the same level, so the equity left in your home for your family is easier to predict than with a lifetime mortgage.
At a Glance
RIO lender criteria compared
From each lender's own published criteria, checked 11 October 2026.
| Lender | Age | Loan to value and loan size | Points to know |
|---|---|---|---|
| Leeds Building Society | Aged 55 to 80 to apply | Up to 55% loan to value. Loans up to £2 million | Lifetime affordability on current and future income. Purchase and remortgage |
| Family Building Society | Youngest borrower 55 or over, with no maximum age | Set by its loan to value scale | No maximum age at the end of the term on RIO |
| The Vernon Building Society | 55 or over, with no maximum age | For borrowers with at least 50% equity. Loans £50,000 to £500,000 | England and Wales, property worth at least £140,000. Portable, and no early repayment charge on repayment after the death of the last borrower |
Several other building societies and specialist lenders offer RIO with their own age, loan to value and property rules.
RIO or equity release, and what is changing
RIO against a lifetime mortgage. With a lifetime mortgage you usually make no payments and the interest rolls up, so the balance grows over time. A RIO needs monthly payments but keeps the balance level. Lifetime mortgages need advice from a qualified equity release adviser, and our guide to borrowing into retirement compares the two.
How the market compares. The FCA reports 3,002 RIO mortgages sold in 2025, against 26,974 lifetime mortgages, with RIO arrears below 1 per cent.
The joint borrower proposal. In CP26/18 the FCA proposed removing the guidance asking lenders to check whether a surviving spouse or civil partner could afford a joint RIO alone. Lenders could instead consider the survivor's future income, such as a spouse's pension. The consultation closed on 28 July 2026 and final rules had not been published when we checked on 11 October 2026.
Other routes. If you can afford capital repayments, a standard mortgage running into retirement may cost less overall. Our page on mortgages over 70 compares lender age limits, and downsizing may remove the need to borrow at all.
Check the pensions you rely on. If one stops or reduces on death, the survivor's income is what will need to cover the interest.
Where to go next
The pages most often read alongside this one.
How we arrange a RIO mortgage
Lifetime affordability decides a RIO, so we start with your income.
Understand your aims
What you need, how long you plan to stay and what you want to leave.
Map your pensions
Every pension, and what continues to a surviving partner.
Compare the routes
RIO, a standard mortgage, downsizing, or a referral for equity release.
Application
With a lender whose age, loan to value and property rules fit.
Completion
We manage the case through to completion.
Read more about borrowing later in life
Related pages and guides.
Is a RIO right for you?
Tell us your ages, your pensions and what you need. We will tell you whether a RIO works and which lenders fit.
Whole-of-market mortgage adviceOur feesContact us
Retirement Interest-Only Mortgages: Frequently Asked Questions
What is a retirement interest-only mortgage?
A mortgage on which you pay only the interest each month, with no fixed end date. The loan is usually repaid from the sale of the home when the last borrower dies or moves permanently into long-term care.
What is the minimum age for a RIO?
Usually 55. Leeds Building Society, Family Building Society and the Vernon Building Society all set 55 as the minimum. Some lenders accept younger borrowers.
Is there a maximum age for a RIO?
Often not. Family Building Society and the Vernon Building Society set no maximum age. Leeds Building Society accepts applicants up to 80.
How much can I borrow with a RIO?
It depends on your income and the property value. Loan to value limits are usually low, for example up to 55 per cent at Leeds Building Society, and lenders check you can afford the interest for life.
How is affordability assessed on a RIO?
On your retirement income, now and in future. For couples, lenders currently also check whether a surviving partner could afford the payments alone, although the FCA has proposed relaxing this.
What happens to a RIO when I die?
The loan is repaid, usually from the sale of the home, once the last borrower has died or moved into long-term care. The Vernon Building Society, for example, asks for repayment within six months.
What is the difference between a RIO and equity release?
With a RIO you pay the interest each month and the balance stays level. With a lifetime mortgage you usually make no payments and the interest rolls up, so the balance grows.
Can I move house with a RIO?
Often, if the lender allows the loan to be ported and the new home meets its criteria. The Vernon Building Society describes its RIO as portable.
Can a RIO repay my interest-only mortgage?
Yes, if you meet the lender’s age, income and loan to value rules. That is one of the most common reasons people take a RIO.
Are RIO rules changing?
The FCA has consulted on removing the guidance that asks lenders to check whether a surviving partner could afford a joint RIO alone. Final rules had not been published when we checked on 11 October 2026.
Written and reviewed by Osman Emin, CeMAP, mortgage and protection adviser · FCA register OCE01003 · Updated YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.