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LLB Later Life Borrowing

Retirement interest only (RIO) mortgage calculator

A retirement interest only, or RIO, mortgage is different from a standard lifetime mortgage. You pay the interest each month, so the balance never grows and nothing rolls up. Because of this, the amount you can borrow depends on what you can comfortably afford from your income, not just your age. The capital is repaid when the home is sold, usually on death or a move into long term care.

For couples, use your combined income. The loan to value cap is a typical lender ceiling; the real limit is whichever is lower, affordability or the cap.

Indicative maximum RIO loan

£120,000

RIO affordability breakdown
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This is an illustration, not a quote or advice. It assumes the monthly interest should sit at or below 30% of your monthly income, a common rule of thumb. Lenders use their own affordability rules, stress test against higher rates, and check that the payments remain affordable for the survivor of a couple. A qualified adviser can confirm what you could actually borrow.