Retirement Interest Only Mortgage

An Interest Only Mortgage for retired borrowers

You will pay our Retirement Interest Only Variable Rate for the whole of the mortgage term - currently 3.39%.

The overall cost for comparison is 3.5% APRC

For more information on Retirement Interest Only (RIO) Mortgages, you can read our guide.

Rate             Overall cost for comparison Max LTV Application fee Completion fee
3.39% 3.5% APRC 55% £0 £500

We do not charge a completion fee for our existing mortgage customers switching to our Retirement Interest Only Mortgage.

 

Early repayment charges

These are the charges that will apply to your mortgage if you want to overpay or repay early.

Can I make overpayments?

With our RIO Mortgage you can make as many overpayments as you like without incurring any early repayment charges.

What if I want to repay early?

If you switch your loan to another lender or repay it in full, you can do so without incurring any early repayment charges.

What if I want to switch my RIO Mortgage to another property?

If you move house during your RIO Mortgage you may transfer the balance to your next home, without penalty. These requests will be subject to our underwriting criteria and can't be extended to any further borrowing if the product has been withdrawn.


Representative example

A mortgage of £120,000.00 payable over 40 years on our Retirement Interest Only Variable Rate of 3.39% would require 480 monthly payments of £340.88.

The total amount payable would be £284,362.40 made up of the loan amount plus interest (£163,622.40), a completion fee of £500.00 and a valuation fee of £240.00.

This example assumes the completion fee is added to the loan and that interest is charged on this fee over the mortgage term.

The overall cost for comparison is 3.5% APRC representative.


Eligibility

Before we agree your mortgage we’ll need to establish that you can afford to meet the monthly payment.

To be eligible for a RIO Mortgage:

  • Applicants must be retired
  • Minimum age is 55 years

Our mortgages are available on residential properties located in the following counties:

  • Bedfordshire
  • Buckinghamshire
  • Cambridgeshire
  • Essex 
  • Hertfordshire
  • Norfolk
  • Northamptonshire
  • Suffolk 

This mortgage is available for home purchase, remortgaging, product switch and additional borrowing.

If you are an existing borrower moving away from the East Anglian region, we can still help you buy your new home anywhere in England and Wales.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE