RIO Mortgage Rates 2026 — Updated October 2026
- RIO mortgage rate range (verified 1 Oct 2026)
- 5.0%–6.0%RIO mortgage rate range (verified 1 Oct 2026)
- Capital repaid from property sale on death/care
- No fixed termCapital repaid from property sale on death/care
- Only — capital stays constant
- Monthly interestOnly — capital stays constant
- Last updated
- October 2026Last updated
Important: Equity release is a long-term commitment and will reduce the value of your estate. It may affect entitlement to means-tested benefits. Independent financial and legal advice is required. All plans recommended are from Equity Release Council approved lenders. Your home may be repossessed if you do not maintain required payments on a secured loan.
Retirement Interest Only (RIO) mortgage rates in 2026 range from approximately 5.0% to 6.0% from specialist later life lenders — broadly similar to standard residential mortgage rates at equivalent LTV. The key advantage of a RIO over equity release is that paying the monthly interest prevents the balance from growing: a £100,000 loan that rolls up to about £333,000 over 20 years in a lifetime mortgage at 6.2% AER stays at £100,000 in a RIO, preserving significantly more estate value.
RIO Mortgage Rates by Lender — Indicative October 2026
Swipe the table sideways to see every column.
| Lender | Rate range (indicative) | Max LTV | Max age at application |
|---|---|---|---|
| LiveMore Capital | 5.0%–6.0% | Up to 75% | No maximum age |
| Hodge Bank (withdrawn from new lending, 2026) | 5.2%–6.0% | Up to 75% | Age 88 at application |
| Legal & General Home Finance | 5.3%–6.2% | Up to 60% | No stated maximum (retirement focused) |
| Nationwide Building Society | 5.1%–5.9% (limited range) | Up to 60% | To age 85 at end of term |
| Scottish Widows | 5.2%–6.0% (indicative) | Up to 65% | Retirement-focused product range |
| Family Building Society | 5.5%–6.5% | Up to 70% | Age 90 at application |
| Marsden Building Society | 5.4%–6.3% | Up to 70% | Age 85 at application |
| Hinckley & Rugby BS | 5.3%–6.2% | Up to 65% | Specialist retirement range |
What moves RIO mortgage rates
Monthly payment affordability
RIO mortgage affordability is assessed on whether pension income (State Pension, defined benefit, drawdown, annuity) can sustainably service the monthly interest payments. The lender stress-tests income against the rate to ensure payments remain affordable even if income changes slightly.
LTV
Higher LTV (more debt relative to property value) means higher monthly interest payments. Most specialist RIO lenders cap at 60%–75% LTV. Hodge Bank offered up to 75% LTV — among the highest for RIO — but has withdrawn from new RIO lending as of 2026, so check current availability across the panel with DBF.
Age
RIO mortgages have no fixed end date — the capital is repaid when the last borrower dies or moves into long-term care. Age affects lender willingness rather than rate directly, though very old borrowers may face a smaller lender pool.
Fixed vs variable
Fixed-rate RIO mortgages provide payment certainty for life. Variable rate RIO mortgages track the lender's standard variable rate and carry rate change risk. For retirees on fixed incomes, a fixed rate RIO is usually preferable.
Comparison with equity release
At 5.5% RIO interest, a £100,000 loan costs £458/month in interest. After 20 years: £100,000 still outstanding (no roll-up). At 6.2% AER (the bottom of the current lifetime mortgage range), the same £100,000 grows to approximately £333,000 after 20 years with no monthly payments. The right choice depends on whether monthly payments are sustainable.
What a RIO mortgage costs: worked example
- Outstanding balance after 15 years
- £120,000 (unchanged)
- Total money out
- £99,000 (interest payments)
- Outstanding balance after 15 years
- approximately £296,000
- Rolled-up interest charged to the estate
- approximately £176,000 (vs £99,000 of RIO interest paid)
Comparison: £120,000 loan. RIO at 5.5% vs Lifetime Mortgage at 6.2% AER over 15 years.
RIO: Monthly payment = £550/month. Total interest paid over 15 years = £99,000.
Lifetime Mortgage: Monthly payment = £0. Total interest payments = £0.
RIO is better if: monthly payments are affordable and preserving the estate matters.
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Rate context and outlook
Lifetime mortgage rates are fixed for life and are priced from long-dated gilt yields, which rose in September alongside other market rates. Bank Rate is 3.75% after the 17 September hold, with the next decision on 5 November.
Retirement interest-only and retirement mortgages follow the wider mortgage market, where fixed rates rose in September. Rates are indicative and depend on age, property value and the amount released.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
How much does a RIO mortgage cost per month?
Monthly payment = (loan amount × annual rate) ÷ 12. A £100,000 RIO at 5.5% costs £458/month. A £150,000 RIO at 5.5% costs £688/month. A £200,000 RIO at 5.5% costs £917/month. These monthly payments stay the same for the life of the mortgage (on a fixed rate) — unlike equity release where there are no monthly payments but the balance grows.
What is the difference between a RIO and a standard interest-only mortgage?
A RIO (Retirement Interest Only) mortgage has no fixed end date — the capital is repaid when you sell, move into care, or pass away. A standard interest-only mortgage has a fixed term (e.g. 25 years) at the end of which the capital must be repaid. A RIO removes the capital repayment deadline entirely, making it fundamentally different for retirement planning.
Which lender offers the highest LTV on a RIO mortgage?
Hodge Bank has withdrawn from new RIO products as of 2026. Previously, Hodge offered up to 75% LTV — among the highest available. LiveMore Capital offers competitive LTV on their RIO product. Most other RIO lenders cap at 60%–70% LTV. A higher LTV means more can be borrowed on the same property — particularly relevant for clients who need to remortgage an existing high-balance mortgage onto RIO terms.
Can I switch from an existing interest-only mortgage to a RIO?
Yes — this is one of the most common RIO transactions. An existing interest-only mortgage approaching its term end (where the lender wants the capital repaid) can be replaced with a RIO, removing the repayment deadline. Specialist lenders including LiveMore Capital actively take on these remortgage cases from lenders who will not extend (Hodge Bank has withdrawn from new RIO lending as of 2026).
Do both partners need to be on the RIO mortgage?
Joint RIO mortgages are the standard structure for couples. The repayment event (death or care) is triggered only when the last borrower leaves the property — meaning the surviving partner continues to live in the property and pay the monthly interest. Single-name RIO applications are also possible.
What is the minimum age?
55 for lifetime mortgages; many RIO and retirement mortgage lenders start at 50–55.
What happens when I die or move into care?
The loan is repaid from the sale of the home, usually after the last borrower dies or moves into long-term care.
Will it affect my benefits?
Releasing cash can affect means-tested benefits; your adviser will check this before you proceed.
Can my family still inherit?
Yes, what remains after the loan is repaid, and some plans let you protect a percentage of the property's value.
Do I need advice?
Yes. Equity release must be arranged through a qualified adviser, and we recommend involving your family.
Where this applies
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Think carefully before securing other debts against your home.
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