Retirement Mortgages

Retirement interest only (RIO) mortgage’s are aimed at older borrowers, generally 55 and above. Unlike your standard interest only mortgage, this type of mortgage doesn’t have a fixed end date and there is no requirement for a repayment strategy. The mortgage is repaid via the sale of the property when the last surviving applicant moves in to long term care or passes away.

If you are looking for your next home, our team of experts are on hand to guide you through the process, which includes giving you a detailed breakdown of the costs you can expect when moving home. We can help you every step of the way including speaking to estate agents on your behalf and negotiating the purchase price for your next property.

As you are only paying of the interest on this type of mortgage, your monthly payments tend to be a lot lower than a typical mortgage which can make it a very attractive and practical option for borrowers.

Our team of highly experienced advisors at Cornerstone Mortgages & Finance will source the whole of the mortgage market to ensure that we find a suitable mortgage tailored to your individual circumstances.


How much can I borrow on a retirement interest only mortgage?

As is the case with a standard mortgage, the maximum loan available will be determined by the income you are receiving along with your outgoings. You will need to be able to evidence that you have a reasonable level of retirement income in order to qualify for a Retirement Interest Only mortgage.

When might a retirement interest only mortgage be suitable?

There are many different scenarios in which a retirement interest only mortgage may be suitable however we have listed a few of the most common below:

  • To release some cash from your property to top up your pension.
  • To purchase a new property which better suits your needs as you get older.
  • To raise some cash to be used as a gift for your loved ones which could help them purchase their own property, university fees, wedding costs etc.
  • To ensure that you can maintain a comfortable lifestyle by having low monthly payments on your mortgage.
  • To pay off your existing interest only mortgage which is coming to the end of its term.
What is the difference between a Retirement Interest Only Mortgage and Equity Release?

With a retirement interest only mortgage you are paying the interest on a monthly basis which ensures that the outstanding balance will constantly remain the same as when you first took the mortgage out. This is beneficial when you are looking to ensure that there is inheritance left for the people you leave behind.

With equity release you are not required to make monthly payments (although some products now allow you to do this). This is because the debt is repaid when the last surviving person passes away or goes into long term care. As you are not making repayments, the amount you originally borrowed will continue to increase which as a result will reduce the equity in your property. It is therefore important to consider the implications on the inheritance you wish to leave behind with this option.


Your home may be repossessed if you do not keep up repayments on your mortgage.

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