A Retirement Interest Only mortgage is a mortgage that allows people aged over 55 years old to borrow into their retirement. Many standard mortgages have an upper age limit when the loan needs to be repaid (often 70 or 75). With a RIO there is no upper age limit. The loan is repaid when the property is sold (or earlier depending on what the customer's needs are). As the name suggests, RIO’s are interest only. This means that the amount that you borrow does not reduce over the term of the loan, you just pay the interest on it each month. Fixed-term rates for RIO’s are available over 2 years, 3 years, 5 years, 10 years or life. This gives flexibility with respect to rates and early repayment charges. There is an affordability assessment for a RIO and a couple who co-own a property both would need to be able to individually afford the mortgage based on their own pension or income. As with any mortgage, if you don't keep up the monthly interest repayments then your home is at risk.

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