Specialist advisors for retirement interest-only mortgages.

Retirement Interest-Only (RIO) Mortgages

Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.

Looking to borrow in later life? Our team of specialists are here to explain all the options and support you throughout the application process.

Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.

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Finding The Best Retirement Interest Only Mortgage Deal For Your Circumstances

Retirement interest-only mortgages (RIO) are an alternative option for older borrowers who may find it difficult to get approved for a standard residential mortgage or are looking for an alternative to equity release schemes. If you've been finding it tough to find your funds, we're here to explain how an RIO mortgage product can be your solution.

When the Bank Says No is a team of mortgage advisors, well versed in all aspects of later life mortgaging. We work with your best interests in mind, and will never pressure you into a deal that isn't right. Our priority is making sure your retirement years are enriched by your RIO mortgage. We find the yes you've been looking for!

What is a retirement interest-only mortgage?

A retirement interest-only mortgage is essentially the same as a standard interest-only mortgage, the one difference being it is specifically intended for later-life borrowers. This product allows you to borrow against your property and just make the monthly interest repayments, rather than the loan capital.

When you die, sell the property, or move into long-term care, the loan will be paid off using money from the sale.

If you think RIO might be right for you, contact our friendly team. We can discuss the retirement interest-only mortgage options available to you and help you formulate a plan for application success!

Should I get a retirement interest-only mortgage?

There’s no right or wrong, and the final decision will be hugely dependent on your circumstances. RIO does, however, present many advantages. If funds are running tight, you’ll be able to avoid selling your home until you die, it will reduce your monthly expenses compared to a standard mortgage, and you won’t have the problem of interest roll-up.

However, there are also some implications to consider. It is likely your home won’t be inherited by your family; instead, it will be sold to repay the loan. Also, you will still have to pass affordability checks, and as these will be based on your retirement income, you may find the amount you borrow to be less than you think.

For more guidance bespoke to your circumstances, give our friendly team a call. We can chat about where you are now, and where you want to be!

Get Started with a Retirement Interest-Only (RIO) Mortgage

Maximise your chance of approval with specialist advice from an expert in Retirement Interest-Only (RIO) Mortgage

Is retirement income only the same as equity release?

Retirement income only is NOT the same as equity release. With an RIO mortgage, you retain 100% of the equity of your property. However, at the end of the mortgage term, the loan will have to be repaid, and this may have to be done through the sale of your property.

It is this similarity which causes many people to confuse it with equity release, but RIO tends to be a cheaper alternative to this and does not involve any form of release of equity.

My bank told me I'm too old to get a mortgage. How will RIO be any different?

RIO mortgages are specifically designed for older borrowers, so it will be different this time around! Most residential mortgages have an upper age limit, but this is not true for RIO mortgages.

Your mortgage term will last until you sell your home or pass away, taking the stress out of your retirement and the fear that you may have to remortgage again in the future.

Still, concerned about the process of applying for an RIO mortgage? Whatever has happened in the past, our advisors can help you overcome any previous mortgage refusals and start your retirement mortgage process well-informed.

Retirement Interest-Only Mortgages FAQs.

Though there isn’t a minimum age for a retirement interest-only mortgage, they are aimed at older borrowers – those aged 55 or older. The purpose of these products is to make it easier for people of retirement age to qualify for a mortgage. If you are below 55 and looking to apply for an interest-only mortgage, you still can, but you should go for a standard option instead.

Pension income is the most common income that will be considered on an RIO mortgage, but other types can be too. Self-employed income in retirement, investment returns, benefits and rental income can all be counted when assessing affordability and your ability to meet the monthly payments.

Our team of advisors will help you go through your income and expenditure before you commit to anything to make sure this is the right mortgage based on your circumstances. On average, we see lenders offering up to 8x income multiples for this type of mortgage.

There are many similarities between retirement interest-only mortgages and lifetime mortgages, but they do have their key differences too. Both types are aimed at older homeowners and allow you to stay in your home, have no set term and are repaid only when the property is sold after you die or move into long-term care.

Where they differ is the monthly repayments. With a retirement interest-only mortgage, you need to keep up with the monthly interest payments, and when you do not there is still a risk of repossession, as there is with a standard mortgage. A lifetime mortgage is different because you don't have to make any monthly repayments, with the interest and capital sum owed paid back only when you die or move into care.

A lifetime mortgage can often prove more costly because you don't repay any of the interest, and this is compounded and builds up over time. With a retirement interest-only mortgage you'll be making the interest payments each month, meaning there will be less to pay when the outstanding loan has to be repaid than if you'd opted for a lifetime mortgage.

If you’re not sure what option is right for you, we can discuss them both and help you come to a decision. We’re not like most mortgage brokers; we won’t push you into anything you don’t want to do. Our job is to listen, guide, and inform. If you want to get started, we can’t wait to hear from you!

You will normally need to borrow a minimum of £10,000. If you want to borrow less than this, you may find the number of lenders who will consider your application will decrease. If you have a specific amount you want to borrow, let us know your preferences and we can help you find the most suitable mortgage option.

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Retirement Interest-Only (RIO) Mortgage Calculator

Expert retirement interest-only mortgage advisors.

Retirement interest only can be an invaluable product for older borrowers, helping them access to finance where other lenders might turn them away. If you're looking to get started with RIO and free up some cash to fund your retirement, our specialist mortgage advisors are here.

Over the years, many retirees have experienced the benefits of an RIO mortgage with help from our friendly team. We'll take the time to listen and understand your circumstances and plans and help you take your next steps with all the latest market insights and tools at your fingertips. Borrowing in later life just got a lot easier!

Helping you access financing in later life.

You might be worried about applying for a mortgage in later life, but you don't have to be. Maybe you've been turned away by a high street bank, or you don't want to release equity on your property, or maybe you're finding the complex application process tricky to navigate. You're not alone.

Our expert team are independent mortgage brokers and are here to simplify the retirement interest-only mortgage process and explain all the ins and outs of RIO. Whatever your circumstances, we're here to help your plans take shape, by finding the finance to make them possible.

Let's get the ball rolling.

We can support you and help you to make yourself as attractive to banks as possible, ready for your next application!

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In order for us to assess your credit history and suitability for different mortgage products, you will need to check your file.