RIO mortgages are interest only mortgages. Introduced by the Financial Conduct Authority in March 2018, Retirement Interest Only (RIO) mortgages were created for mature borrowers who want the security of a mortgage with no end date, who can keep up with the interest payments each month. Unlike other mortgages, you won’t repay the loan until you move into long-term care or pass away.

With a Hodge RIO mortgage, you can borrow up to 75% of the value of your home and only need to pay back the interest each month. This allows you to unlock value in your home to do things like pay off debts, support family members, fund your lifestyle, make home improvements, or even go on a dream holiday.

Who is eligible for a RIO Mortgage?

If you’re looking to mortgage your home and can afford to make interest payments each month, a RIO mortgage might be what you’re looking for. RIO mortgages are designed for older borrowers who can afford to make monthly interest payments, and who’d like the peace of mind that their mortgage is in place for life. Our RIO mortgage range is flexible and it might suit you, even if you’ve ruled out similar options in the past.

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Is a RIO mortgage right for me?

Our RIO mortgage is designed for borrowers aged over 50, looking to mortgage their home in later life, or looking for an alternative to equity release. Borrowing money tends to become trickier as you approach retirement and beyond. But with a RIO, we look at a wide range of affordability criteria which allows us to be more accommodating than traditional mortgage providers.

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Benefits of a retirement interest only mortgage

  • Single person Slate icon

    RIO isn’t just for retired people

    The interest-only mortgage was designed for people over the age of 50 in mind but are ideal for those who aren’t looking for an end date.

  • Pound Slate sign

    Fee-free applications are par-for-the-course with Hodge

    It’s free to apply for retirement interest-only mortgages.

  • House and pound sign Slate icon

    Up to a maximum LTV of 75%

    The loan-to-value is 75%, which means your loan is for 75% of the home's value.

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Our Early Repayment Promise

The Hodge Early Repayment Promise gives you peace of mind, knowing if you need to sell your property and move out, you won’t be penalised by early repayment charges.

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Income criteria

As part of your RIO mortgage application, we’ll ask for proof of income and outgoings. If you’re still working, we’ll need proof of your employed/self-employed income. If the loan extends beyond the date you expect to retire, you have a reasonable level of income in retirement in order to be eligible. We’ll consider the following types of retirement income: 

  • Pension income or future entitlements
  • Investment income
  • Rental income
  • Commercial rental income
  • Ltd company residential rental income
  • Holiday rental income
  • Spousal/maintenance income
  • Sub-contractor income
  • Some benefits (see your financial adviser or mortgage broker for more information on what we will and won’t accept)
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Interested?

We don’t offer RIO mortgages directly to the public. It’s a big decision, and you’ll need to speak to a financial advisor to make sure it’s the right one for you. If you don’t already have an adviser, you can start your search, using unbiased.co.uk.

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FAQs

Find out more about our Retirement Interest Only mortgage

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

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