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Retirement Interest Only (RIO) 5 Year Discounted Rate DRI001

Key Details

Term 5 years
Initial Rate1 Currently 3.23%
Overall Cost For Comparison2 5.4% APRC
MAX LTV3 55% (age 65+), 40% (up to age 65)
Early Repayment Charge NIL
Product Fees £199 application fee, £800 completion fee

Representative Example

A mortgage of £200,000 payable over 40 years initially on a variable rate, currently 3.23% for 5 years and then on our current standard variable rate of 5.99% for the remaining 35 years would require 59 monthly payments of £538.33 and 420 monthly payments of £998.29; plus one initial interest payment of £548.66.

The total amount payable would be £653,519.93 made up of the loan amount, plus interest and fee(s) totalling £ 453,519.93.  This includes Application Fee (£199), Chaps Fee (£25), Completion Fee (£800), Legal Fees (£350), Valuation Fee (£429) and Redemption Administration Fee (£125).

The overall cost for comparison is 5.4% APRC representative.


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

Key Product Features

  • Exclusively available via CeRER or CertER Equity Release qualified advisers for Retirement Interest Only
  • Interest only repayment strategy must be the sale of the property when the surviving borrower moves into long term care or dies
  • Minimum loan size £50,000 for properties located in Nottinghamshire, Derbyshire or South Yorkshire or for existing members with one year’s continuous membership, minimum loan size £75,000 for all other circumstances. Maximum loan size £250,000
  • Maximum 40% LTV up to age 65, maximum 55% LTV age 65 or over
  • Minimum age 55 years
  • Borrowers should nominate a required term and if no term is specified, a term of 40 years will be assumed
  • Drawdown option available up to the cumulative maximum LTV available to the borrower at the point of application, subject to a satisfactory affordability assessment on each withdrawal. Minimum initial drawdown of £50,000 and minimum subsequent drawdowns of £10,000
  • Valuation fee and legal fees payable by the customer
  • Maximum number of 2 borrowers, both of whom must use the property as their main residence. Where there are joint borrowers, the mortgage must be affordable on an individual basis and the life event is triggered by the surviving borrower.
  • A minimum interest rate of 1.5% will apply during the term of the discounted period

Additional Eligibility and Application Criteria

  • Intermediaries must complete the attached Retirement Interest Only declaration form and submit this to us with the mortgage application and supporting documentation
  • Borrower(s) must maintain interest only payments and there is no facility to allow interest “roll up”
  • Retirement Interest Only mortgages are designed to be repaid on the sale of the property in the occurrence of one or more of the specified life events – death of the borrower(s) or the borrower(s) moves into long-term care
  • Maximum number of 2 borrowers, both of whom must use the property as their main residence. Where there are joint borrowers the life event is triggered by the surviving borrower
  • The mortgage must be affordable on an individual basis. Where there is more than one borrower, i.e. following the death of one party, the surviving borrower must be able to afford the loan from their remaining income
  • Standard income verification required if the borrower(s) is still in employment or self-employment plus evidence of stable retirement income e.g. pension or self-employment income
  • Independent legal advice will be required for the borrower(s)
  • Solicitor/borrower(s) will need to ensure that two Lasting Powers of Attorney will be in place covering both (i) Health and Welfare and (ii) Financial Affairs
  • There will be a restriction on any other occupiers moving into the property
  • Solicitors must discuss with borrower(s) the importance and benefits of informing family members about the mortgage transaction and the affect this may have on the estate of the borrower(s)
  • Borrower(s) must be made aware of the potential effects on benefits and tax liabilities through drawing down a loan for income, and also of the availability of alternative finance options available, such as Equity Release
  • A procuration fee of 0.50% is payable on mortgage completion only and is not payable on any subsequent drawdowns

Important Information

Unless otherwise stated, our mortgage products are available for house purchase or remortgage. All our mortgage products are subject to availability and can be withdrawn at any time.

All mortgage applications are manually underwritten by our experienced underwriters and are subject to a full assessment against our lending criteria.

It is important that you take time to read and understand the mortgage product features detailed above and the information about our Residential or Buy to Let mortgages detailed in the General Information Guides.

How to Apply

Please contact our Intermediary Support team for further details. You can check affordability on our website and submit a DIP request or request an ESIS from our online portal. You can apply either online or through the post.

Please note that this product is only available via CeRER or CertER Equity Release qualified advisers.


1. The Initial Rate is the rate available during the initial term of the mortgage. Once the initial rate term has expired, the mortgage will revert to our Standard Variable Rate (SVR).

Our SVR is set by us and is currently 5.99%, as a variable rate it may go up or down.

2. The Overall Cost for Comparison is given as the Annual Percentage Rate of Charge (APRC) and includes all charges incurred relating to the mortgage. The APRC is intended to help you as a borrower compare the interest rates on different products.

3. Like all other mortgage lenders, we will allow you to borrow against a proportion of the overall property value. This is known as Loan to Value (LTV) and is expressed as a percentage. For example, if you want to purchase a property at £100,000 and you would like to borrow £85,000, then you will need a mortgage available at 85% Loan to Value (LTV). The available LTV can vary depending upon the type of mortgage.

Shared Ownership mortgages will offer two percentages under LTV – the proportion of the property value and the proportion of the share being purchased.

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