RIO vs Lifetime Mortgage Rates 2026 — Updated October 2026
- RIO rates, October 2026
- 5.0%–6.0%RIO rates, October 2026
- Lifetime mortgage rates, October 2026
- 6.2%–7.5% AERLifetime mortgage rates, October 2026
- RIO monthly payment on £150,000 at 5.5%
- £688RIO monthly payment on £150,000 at 5.5%
- RIO saving over 15 years on £150,000
- c.£112,000RIO saving over 15 years on £150,000
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.
A RIO keeps the debt level because you pay the interest each month; a lifetime mortgage needs no payments but the debt grows. Over 15 years on £150,000, that difference is worth over £100,000 to your estate.
RIO vs Lifetime Mortgage Rates: 15-Year Cost — October 2026
Swipe the table sideways to see every column.
| On £150,000 over 15 years | RIO at 5.5% | Lifetime mortgage at 6.5% |
|---|---|---|
| Monthly payment | £688 | £0 |
| Total interest paid in lifetime | £123,750 | £0 |
| Owed at the end | £150,000 | £385,776 |
| Total cost to you and your estate | £273,750 | £385,776 |
What a RIO and a lifetime mortgage cost: worked example
- RIO: total cost to you and your estate
- £273,750
- Lifetime mortgage: total cost to you and your estate
- £385,776
- Saved with the RIO
- about £112,000
£150,000 over 15 years: RIO at 5.5% vs lifetime mortgage at 6.5%
The RIO is cheaper if you can afford the payments; a lifetime mortgage needs no payments but the debt grows.
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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
Which is cheaper?
A RIO, if you can afford the payments — here by about £112,000.
What if I can no longer pay a RIO?
Talk to the lender early; switching to a lifetime mortgage later is sometimes possible.
Which is easier to qualify for?
A lifetime mortgage, because there is no affordability test; a RIO needs income to cover the interest.
Can I switch from a RIO to a lifetime mortgage later?
Sometimes, if your income falls; it depends on age and equity at the time.
Which leaves more to my family?
A RIO, because the debt does not grow.
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
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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.
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. Advice is provided by a qualified equity release adviser. Check that this mortgage meets your needs if you want to move or sell your home, or want your family to inherit it.
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Independent whole-of-market advice · FCA No. 814533