Retirement Interest Only (RIO) Mortgage 

Our RIO mortgage is designed for over 65's who are looking to stay in their home and avoid downsizing or moving into retirement accommodation. 

With a RIO mortgage, your client doesn't need to pay back their mortgage until a specific life event occurs such as going into long-term care or passing away. However, your client will need to make monthly payments to cover the interest, so when it comes to repaying the mortgage, the outstanding total will be exactly the amount borrowed. 

Enjoying life, not worrying about their mortgage

Who is a RIO right for?

  • Clients who have an Interest Only mortgage coming to an end and are unable to repay the capital balance, or they are not ready to downsize or move into retirement accommodation.
  • Clients who want to release equity from their home but aren't keen on taking an equity release mortgage. 
  • Clients who want to free up some money to, for example, make home improvements whilst maintaining a comfortable retirement lifestyle.

Requirements:

  • To apply for a RIO, our FBS Owner Occupier Mortgage Application Form must be completed along with a Registered Contact Declaration form.
  • Your client(s) must be 65 or over and have at least 50% equity in their property. Other than that, our standard owner occupier lending criteria applies. 
  • Borrowers must continue to make monthly payments for an undefined term.
  • For joint applications borrowers must pass a predecease affordability assessment.
  • Your clients can find our FAQ's on our consumer website here.

What is a registered contact and why does my client need one with a RIO mortgage?

A registered contact is someone that your client has said they are happy for us to speak to if we can’t get hold of your client to discuss their mortgage.

If we’re able to, we will let your client know that if we don’t hear from them within a certain period, we will speak with their registered contact.

If your client has a RIO mortgage with someone else, each client must have a registered contact, and this is required for the life of the mortgage. Each client can have the same person as their registered contact, but they can’t nominate each other for their registered contact. 

The registered contact isn’t responsible for any obligations in respect of the mortgage. We will only give them information about your client's mortgage if we can’t contact them. They won’t be able to transact or make any changes to your client's mortgage.

We explain the registered contacts responsibilities in detail in our RIO registered contact declaration document.
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3.49% 5 year fixed rate Retirement Interest Only

Code XFZ003
30/04/2025 5.04% 50% £175* £999** £250 No Yes No  
More details, fees & downloads Criteria A-Z Check affordability DIP Request Illustration Request Contact your BDM Online Application
  • Maximum loan - No maximum. Loans above £500,000 should be referred to us for specific agreement before submission of an application
  • LTV - Maximum LTV 50%.
  • Early Repayment Charges - 5% until 30/04/2021, 4% until 30/04/2022, 3% until 30/04/2023, 2% until 30/04/2024, 1% until 30/04/2025
  • Cost for comparison - 4.4% APRC
  • Purpose - Purchase, remortgage, product switch and additional borrowing
  • *Application Fee - £175 + Valuation Fee
  • Valuation Fees - Free for properties up to £500,000. For properties above £500,000 the standard valuation fee scale applies, less £330 discount
  • **Product Fee - £999 for loans up to £500,000. For loans above £500,000 0.3% of the loan amount
  • Additional criteria - The mortgage must complete by 01/07/2020

3.74% discounted rate Retirement Interest Only with flexible features

Code XDZL02
n/a years 5.14% 50% £175* £999** £250 No Yes No  
More details, fees & downloads Criteria A-Z Check affordability DIP Request Illustration Request Contact your BDM Online Application
  • Discount - 1.40% discount applied to our Managed Flexi Mortgage Rate for term
  • Maximum loan - No maximum. Loans above £500,000 should be referred to us for specific agreement before submission of an application
  • LTV - Maximum LTV 50%.
  • Early Repayment Charges - 3% in the first year, 2% in the second year and 1% in the third year. Charged on the original loan amount
  • Overpayments - Allowed, Early Repayment Charges free, where the mortgage is not fully redeemed
  • Cost for comparison - 4.0% APRC
  • Minimum interest - 3.29%
  • Purpose - Purchase and remortgage, product switch and further advance
  • *Application Fee - £175 + Valuation Fee
  • Valuation Fees - Free for properties up to £500,000. For properties above £500,000 the standard valuation fee scale applies, less £330 discount
  • **Product Fee - £999 for loans up to £500,000. For loans above £500,000 0.3% of the loan amount

3.64% discounted rate Retirement Interest Only

Code XDZ002
n/a years 5.04% 50% £175* £999** £250 No Yes No  
More details, fees & downloads Criteria A-Z Check affordability DIP Request Illustration Request Contact your BDM Online Application
  • Discount - 1.40% discount applied to our Managed Mortgage Rate for term
  • Maximum loan - No maximum. Loans above £500,000 should be referred to us for specific agreement before submission of an application
  • LTV - Maximum LTV 50%.
  • Early Repayment Charges - 3% in the first year, 2% in the second year and 1% in the third year. Charged on money repaid
  • Cost for comparison - 3.9% APRC
  • Minimum interest - 3.19%
  • Purpose - Purchase and remortgage, product switch and further advance
  • *Application Fee - £175 + Valuation Fee
  • Valuation Fees - Free for properties up to £500,000. For properties above £500,000 the standard valuation fee scale applies, less £330 discount
  • **Product Fee - £999 for loans up to £500,000. For loans above £500,000 0.3% of the loan amount
All of these mortgage products have limited funds and may be withdrawn at any time. This type of mortgage is available to applicants aged 65 and over for properties in England or Wales.

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Find Your Local

Business Development Manager

Your Local BDM:

Arif Kara

Arif was previously a mortgage adviser, and focuses on North and West London. Contact Arif for help with your clients' mortgages.
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Michelle Parry-Bunter

Michelle has worked for the Society for over a decade and focuses on the South Coast. Contact Michelle for help with your clients' mortgages.
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Your Local BDM:

Nathan Waller

Nathan was previously a mortgage and protection adviser, and focuses on Essex and Kent. Contact Nathan for help with your clients' mortgages.
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Your Local BDM:

Charlotte Grimshaw

Charlotte has a background working with intermediaries within the Building Society sector and focuses around the West M25 area. Contact Charlotte for help with your clients' mortgages.
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Your Local BDM:

Darren Deacon

Darren has over 28 years' Financial Services experience and focuses on both the East & West Midlands. Contact Darren for help with your clients' mortgages.
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Your Local BDM:

Paul Roberts

Paul has over 30 years' experience and focuses on the North (inc. M62 corridor), Yorkshire & North East. Contact Paul for help with your clients' mortgages.
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