Retirement Interest Only (RIO) Mortgage
A Retirement Interest Only (RIO) mortgage lets you pay the monthly interest on your loan - nothing more.
About Retirement Interest Only (RIO) Mortgage
The capital balance stays constant and is repaid only when you sell your home, move into long-term care, or pass away. No fixed end date. No repayment vehicle required. The RIO was designed specifically for borrowers in or approaching retirement who can service interest payments but don't want the capital repayment pressure of a standard mortgage.
The options we compare
RIO for Remortgage
Convert your existing interest-only mortgage to a RIO before the term ends. Remove the repayment deadline entirely. Many clients approaching the end of an interest-only term use a RIO to extend without a forced sale or equity release.
RIO for Purchase
Buy a new property in retirement using a RIO. Monthly interest payments from pension income. Specialist lenders including LiveMore, Hodge, and Legal & General offer RIO for both remortgage and purchase.
RIO for Capital Raising
Remortgage to a higher balance on a RIO to release capital - for home improvements, gifting to family, or debt clearance - while keeping monthly payments manageable.
Fixed Rate RIO
A fixed interest rate for the full mortgage term - meaning the same monthly interest payment for the life of the mortgage. Legal & General, Hodge, and LiveMore all offer fixed rate RIOs. Certainty of payments is the primary attraction.
Variable Rate RIO
A tracker or variable rate RIO. Lower initial payments but exposure to rate changes. Some specialist lenders offer discounted rates for an initial period.
RIO vs Equity Release
We compare RIO and equity release side by side for every client. RIO preserves more equity (no interest roll-up), requires monthly payments, and keeps the loan balance constant. Equity release requires no monthly payments but compounds interest. The right choice depends on your income and inheritance priorities.
How We Help
Affordability check
RIO requires evidenced income sufficient to service the monthly interest. We assess all income sources - pension, State Pension, drawdown, annuity, rental - and confirm the realistic loan amount.
Lender sourcing
Key RIO lenders include LiveMore Capital, Hodge Bank, Legal & General Home Finance, Nationwide, Santander (limited range), Scottish Widows. We source competitive rates across the panel.
Application and valuation
We manage the application, property valuation, and lender requirements. For most RIO applications, a credit check and income evidence are the primary assessments.
Completion
Your existing mortgage is repaid and the RIO completes. Monthly interest payments begin. The capital is repaid from the eventual property sale.
Speak to our later life lending specialists
Call 0204 6211776 · Whole-of-market advice across all later life products · FCA No. 814533
Frequently asked questions
What is the difference between a RIO and a standard interest-only mortgage?
A standard interest-only mortgage has a fixed end date - when the term expires, the full capital must be repaid. A RIO has no fixed end date - the capital is only repaid when you sell, move into care, or die. You never face a deadline for capital repayment with a RIO, which makes it fundamentally different for retirement planning.
Who offers RIO mortgages in the UK?
The main RIO mortgage lenders are: LiveMore Capital (lends to any age, widest income acceptance), Hodge Bank (up to age 88 at application, up to 75% LTV), Legal & General Home Finance (fixed rate for life, up to 60% LTV), Nationwide Building Society (limited RIO range), Scottish Widows, Marsden Building Society, Hinckley & Rugby Building Society, and Family Building Society. We access all of these.
What happens to my RIO mortgage when I die?
When the last borrower on the mortgage dies, the property is sold and the outstanding capital balance is repaid to the lender from the sale proceeds. Any remaining equity passes to the estate. This is the same mechanism as a lifetime mortgage, with the key difference that with a RIO, the balance has not grown during the mortgage term (because you have been paying the interest monthly).
Can I switch from my current interest-only mortgage to a RIO?
Yes - and this is one of the most common RIO transactions. If your interest-only mortgage term is ending and you cannot repay the capital, a RIO removes the deadline. We assess whether a RIO or equity release better suits your circumstances before approaching any lender.
Is the FCA reviewing RIO mortgage regulations?
Yes. The FCA launched Later Life Mortgages Market Study MS26/1 in March 2026, specifically examining lifetime and RIO mortgages. The study is considering whether RIO affordability assessment requirements should be reformed to increase accessibility. We will update our advice as the FCA's interim findings are published in Q4 2026.