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Retirement Interest Only Mortgages

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Enjoy flexibility and security in your retirement. Available exclusively to those aged 55+, our Retirement Interest Only mortgages could be an ideal later-life lending solution for purchasing a home, remortgaging or releasing equity from your current property.

What's a Retirement Interest Only mortgage?

Our Retirement Interest Only (RIO) mortgage provides an alternative to equity release. It’s an interest-only loan designed specifically for homeowners aged over 55 who wish to remain in their homes with no plans to downsize. You can use a RIO mortgage to buy a new home, remortgage or release equity* in your current property.

Unlike a traditional repayment mortgage, you only pay the monthly interest, not the capital. This means you keep more of your disposable income each month to enjoy the things that matter most, whether it's travel, hobbies or spending time with family.

What’s the difference between Marsden’s RIO and Later Life mortgages?

Our Later Life mortgages are residential mortgages for those aged 55+ and are available on either a repayment or interest-only basis.  These mortgages could be an ideal lending solution for those who are retired and would like a product with traditional terms.

On the other hand, RIO mortgages cater to those who want to make interest-only payments on their mortgage. As this mortgage has no end date, the homeowner pays off the capital when they move into long-term care or pass away.

A RIO mortgage could be suitable for those wishing to remain in their current home, with no plans to downsize. Each applicant, if applying jointly, will need to be able to afford the interest payments on their own. We will take into account any income that’s transferable upon death.

Could a RIO mortgage be right for me?

A RIO mortgage could be an option if you’re looking to release equity from your home and enjoy your retirement. To apply for this type of mortgage, there’s a range of eligibility criteria you’ll need to meet. As a guide, you could be eligible for a RIO mortgage with the Marsden if:

  • You’re looking to borrow at least £30,000
  • You’re looking to borrow a maximum of £750,000
  • Your property is worth at least £150,000
  • You’re looking to borrow up to 55% LTV
  • You’re at least 55 years old (for joint cases, both applicants need to be 55 or over)
  • You have an annual income of at least £17,500 (the mortgage needs to be affordable by both applicants)
  • You’re looking for an interest only mortgage
  • You want to stay in your property with no plans to downsize


*Please note, if you’re looking to borrow against your home for a variety of reasons (home improvements for example), depending on the amount of the loan advance, documented evidence may be required to support the loan purpose.

How does a RIO mortgage get paid off?

Unlike traditional residential mortgages, a RIO mortgage doesn’t have a set term.  Homeowners don’t repay the capital until they move into long-term care or pass away. In this case, the capital would usually be paid off as a lump sum upon the sale of the property.

What’s the maximum LTV for a Retirement Interest Only mortgage?

With a Marsden Retirement Interest Only mortgage, you can borrow up to 55% of the loan-to-value (LTV) of your home.

How do I apply for a RIO mortgage?

If you’re ready to get started and would like to apply for a mortgage with us or find out about our RIO mortgage rates, our team of UK-based advisors are on hand to help. They can give you more details about our products, walk you through the application process and carry out an Agreement in Principle (AIP) over the phone.

To find out more, please call 01282 440500 or request a call back on this page. Our advisors are available Monday to Friday from 9:00am to 4:45pm.

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