Notices

Our Windfall Bond is now available for new account openings

Our Windfall Bond account which earns you interest and entry into a monthly free prize draw with a chance to win between £100 and £50,000 is available for new account openings. Currently paying Bank of England Bank rate minus 1%. Further information can be found here.
Rate changes following Bank of England decision to decrease its Bank Rate by 0.25% to 4.50% on 6 February 2025. Read more

Savings: Interest rates for Windfall Bond and Tracker Savings Bond will decrease by 0.25% from 1 March 2025. We will be writing to all customers individually to confirm the new rates.
Mortgages: Tracker mortgages will change on 25 March 2025 and we will write to customers individually with revised payment details where the new rate exceeds the minimum rate (or ‘floor’) already applying to their mortgage.
(Notice updated 17/02)

Retirement Interest-Only (RIO) mortgage

Our RIO mortgage is suitable for those aged 55 and over, who would like to stay in their home and avoid downsizing.

The mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

At Family Building Society we can assist with a mortgage if you are moving home or would like to raise some equity by re mortgaging your existing property. We can consider an opened-ended RIO mortgage where each applicant is aged 55 or over.

The minimum property value we would consider is £120,000 in England and Wales.

What is a Retirement Interest-Only mortgage?

Our Retirement Interest-Only (RIO) mortgage offers an alternative way of borrowing in later life.

It is a mortgage where the amount we lend to you does not have to be repaid until a specified life event occurs. This could be if you go into long-term care or you (or for joint borrowers, the surviving borrower) pass away. With a RIO mortgage, you will be required to make monthly interest payments each month, so at the end of the term what you owe is what you’ve borrowed.

Am I eligible?

If you are over 55 and are struggling to get a standard residential mortgage or want the chance to reduce your current monthly mortgage repayments, our RIO mortgage could be ideal for you. Unlike a lifetime mortgage, where the interest is typically added onto the loan, with a RIO mortgage you pay monthly interest payments. Your affordability is assessed for a RIO mortgage to ensure you can meet the monthly interest payments.

The minimum loan you can apply for is £45,000 and your property must be worth at least £120,000.

Our RIO mortgage is available for purchase and remortgage and for existing customers who wish to product switch or require additional borrowing. View our product details

How does the RIO mortgage work?

Unlike lifetime mortgages, our Retirement Interest-Only mortgage does not roll up interest and there is no set end date to repay the balance.

Each month you make payments which cover the interest. To give you peace of mind, we calculate your monthly payments so that when the time comes for you to repay the capital, it is only the amount you borrowed which needs to be repaid.

With no fixed end date, repayment of the full loan occurs when a life event triggers it, for example you move into long-term care or pass away.

Who is our RIO mortgage suitable for?

A RIO mortgage may be for you if:

Your current Interest-Only mortgage is coming to an end and you are unable to repay the capital balance, or you aren’t ready to downsize, or move into retirement accommodation.
You want to release equity and use for your loved ones, perhaps this may be to help your children or grandchildren onto the property ladder.
You want to release equity to make some home improvements or enhance your retirement lifestyle.

Is a RIO mortgage right for me?

Retirement Interest-Only (RIO) mortgage offers several benefits, such as cheaper monthly repayments and being able to stay in the home you love. There are also other factors to consider with a RIO mortgage.

Advantages of a RIO mortgage:

Lower monthly repayments
With a RIO Mortgage you only pay off the interest each month, which can be lower than the monthly payments on a standard repayment mortgage.

Flexibility
You don't need to be retired, we only ask that you are 55 years or older. Our RIO mortgage can be used if your current Interest-Only mortgage is coming to an end and you are unable to repay the capital balance, or you aren’t ready to downsize, or move into retirement accommodation.

No end date
A RIO mortgage doesn't have a fixed end date and carries on until a specified life event occurs, such as going into long-term care or when you (or for joint borrowers, the surviving borrower) pass away. This allows you to remain in your property as long as you like until a life event occurs.

Use the money however you want
You can also use a RIO mortgage if you want to release equity to make some home improvements, enhance your retirement lifestyle or help loved ones out with a financial boost.

Disadvantages:

A RIO mortgage is an Interest-Only mortgage so you will not be paying off any of the capital of the mortgage. The full loan will need to be paid when a specified life event occurs, for example if you go into long-term care or pass away.
You'll need to be able to pay the interest payment each month until the end of the term.
There’s no fixed end date with the RIO, but the mortgage will still have to be repaid. This would usually happen when your house is sold when you pass-away or if you move into long term care. This means you may not be able to leave your house to your family and the amount of inheritance you leave may be affected.
You need to have a minimum of 50% equity in your home.
If you're taking out a RIO mortgage with a spouse or partner, you'll need to be able to show that each of you could afford the monthly payments should the other pass away.

For more information read our RIO mortgage frequently asked questions

Frequently asked questions on RIO mortgages

Our most frequently asked questions.

Who can apply?

You can apply if you are aged 55 or over.

How do I apply?

Step 1 - Start by contacting our New Business Team on 03330 602 389 or by using the Call Me Back form. They’ll go over some basic information with you including how much you would like to borrow and what for. They’ll need to know about your income and outgoings to make sure you can afford the mortgage and the monthly mortgage payments and they’ll check that the mortgage meets our lending criteria.
Step 2 – After our New Business Team have reviewed your circumstances, they’ll refer you to our Mortgage Advice Team who will go through your circumstances in detail and recommend a suitable product. This advice is free of charge from our in-house team, or you can choose to use your own adviser (they might charge you for this).
Step 3 – Submit your application along with any supporting documents (there is a list of what’s required on our application form) and the £175 Application Fee. There will be further fees associated with the product selected.
Step 4 – Once the application has been assessed in due course a valuation will be carried. When the valuation has been underwritten and we will provide you with a Mortgage Offer. A copy of this will also be given to your nominated Solicitor who will contact you with some forms to be completed.
Step 5 – Once your nominated Solicitor have carried out the necessary searches and received the forms back from you we can arrange to send your solicitor the funds (this is called “completion”).

Want to speak to one our team about a RIO mortgage?

If you have any questions or are still unsure whether our Retirement Interest-Only mortgage is for you, we are here to help. Our qualified mortgage advisers will be happy to provide you with more information on our RIO mortgages.

Ask us for a call back Email us