Royal London has chosen to introduce its customers to the experts at Royal London Equity Release Advisers. They will provide advice on equity release products from across the whole market and will make a recommendation to you based on your personal circumstances. You will not receive advice or any recommendation from Royal London. The information on this page has been provided by Royal London Equity Release Advisers to help you understand more about releasing equity.
What is a Retirement Interest-Only Mortgage?
A Retirement Interest-Only Mortgage (also called a RIO) is a mortgage available to homeowners over the age of 50, where you'll need to pay back the interest each month. It's a long-term loan that lets you borrow a lump sum against the value of your home.
You could use a RIO to buy a new home, refinance an existing one or fund your retirement.
Who can get a Retirement Interest-Only Mortgage?
You can apply for a RIO if you meet these conditions.
You’re aged 50 or over
You own or want to own a UK home
You’re able to pass an affordability check
How does a Retirement Interest-Only Mortgage work?
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You borrow a tax free lump sum of money secured against your home.
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You'll only need to pay the interest each month, so your monthly payments could be lower than with a traditional mortgage.
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You could choose a fixed interest rate, so you'll always know how much your monthly repayments will be.
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The remainder of the mortgage will be paid back when your property is sold, once the last surviving homeowner dies or goes into long-term care.
Important things to know
- You’ll need to pass affordability checks to determine if you can get a RIO, and how much you could borrow.
- Because a RIO involves making required payments to clear the interest monthly, there’s a risk of repossession if you miss any monthly repayments.
- A RIO will reduce the value of your estate and could affect your entitlement to means-tested benefits.
- You should think carefully before securing other debts against your home.
Retirement Interest-Only Mortgage fees and charges
If you choose to make an application with the help of Royal London Equity Release Advisers, there are a few fees and charges that you might need to pay.
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Property and legal fees
You'll need to think about property valuation fees, solicitors fees and lender application fees. If you're buying a property, you might have to pay stamp duty and conveyancing fees.
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Advice fee
If you enquire with Royal London Equity Release Advisers, there's also an advice fee. It will be no more than £1,690, and will only be charged if you take out a mortgage product. By offering a capped fee instead of a percentage of the amount borrowed, you won't pay more if you want to borrow more. You can either add your advice fee to the amount you borrow or pay it up front.
For more information about fees, charges, and other costs, read our guide How much does equity release cost?
How to apply for a Retirement Interest-Only Mortgage
You can start off the process by speaking with the Royal London Equity Release Advisers UK-based Information Team. Here's a step-by-step explanation of how it works.
Speak with the team
Contact Royal London Equity Release Advisers to schedule a no-obligation appointment with a fully qualified adviser. They'll answer any questions you have.
Explore your options
At your appointment, your adviser will talk you through everything you need to know and all the different features of a RIO.
Submit your application
If you'd like to proceed, your adviser will help you fill out your application. It'll also be checked by a second qualified expert from Royal London Equity Release Advisers.
Contact Royal London Equity Release Advisers to find out more or start your application
Their Information Team is here to support you at every step. You can contact them to ask any questions you have about equity release, or you can schedule a no-obligation appointment to discuss your options in more detail.
Get in touch with the Royal London Equity Release Advisers Information Team
0800 023 9311
Mon to Fri: 9am-8pm. Sat: 9am-5pm, excluding bank holidays.
More equity release options and guides
“Royal London Equity Release Advisers” is a trading name of Responsible Life Limited. Responsible Life Limited uses Royal London branding under licence from Royal London Marketing Limited. “Royal London”, the “Royal London logo” and “Royal London Equity Release” are registered trade marks of The Royal London Mutual Insurance Society Limited. Royal London Marketing Limited and The Royal London Mutual Insurance Society Limited do not provide regulated mortgage advice.
Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 610205. Registered in England and Wales under company number 07162252. Registered office: Princess Court, 23 Princess Street, Plymouth PL1 2EX.
Responsible Life Limited is a wholly owned subsidiary of the Royal London Group who may benefit if you choose to take regulated mortgage advice. Being a wholly owned subsidiary of the Royal London Group does not alter Responsible Life Limited’s regulatory responsibilities.
If you choose a mortgage with required payments during your lifetime then your home may be repossessed if you do not keep up with the payments. Borrowing with a Lifetime Mortgage or Retirement Interest-Only Mortgage will reduce the value of your estate. Receiving a cash lump sum may also affect your entitlement to means-tested benefits. Think carefully before securing other debts against your home.
To understand the features and risks, ask for a personalised illustration. Your adviser will talk through the setting up costs of a mortgage. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,690.