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3.39% Retirement Interest Only 5 year discount [RI04]

Follow on rate SVR currently 5.24%.
The overall cost for comparison is 4.8% APRC

Retirement Interest Only (RIO) mortgage for borrowers who are over 55 years old. For loan sizes between £25,000 - £49,999.
  • min age 55
  • no max age
  • no early repayment charges
Retirement Interest Only (RIO) mortgage for borrowers who are over 55 years old. For loan sizes between £25,000 - £49,999.
  • Initial Rate, a discount of 1.85% from our SVR for 5 years
    3.39% variable
  • Followed by our Standard Variable Rate (SVR) for the rest of the term
    5.24% variable
  • The overall cost for comparison is
    4.8% APRC
  • Maximum LTV
    60% including fees
  • Application Fee
  • Product fee - may be added to the loan.
  • Early Repayment Charge
  • min age 55
  • no max age
  • no early repayment charges

Representative Example

A mortgage of £45,000 payable over 23 years initially on a discount of 1.85% from our Standard Variable Rate, currently 5.24%, giving a pay rate of 3.39% for 5 years and then on our Standard Variable Rate, currently 5.24%, for the remaining 216 months would require 60 payments of £128.61 and 216 payments of £198.79.

The total amount payable would be £96,557.24 made up of the loan amount plus interest (£50,655.24) plus a product fee of (£499), valuation fee of (£130), legal fees to your solicitor of (£148), fees transfer fund (£25) and exit fee of (£100).

The overall cost for comparison is 4.8% APRC representative.

Further Information


  • There is no upfront application fee to pay.
  • Product fee £499. This may be added to the loan subject to the maximum LTV.
  • Valuation fees are payable on a set scale as detailed in the separate Fees Guide.
  • Solicitors and licensed conveyancers fees are not based on a set scale and solicitors must be approved by the Society.
  • Proc fees are 0.38% capped at £4,000.

Other charges may be made for mortgage services.

Acceptable Credit Criteria

This product accepts our standard credit criteria click here for details

Early Repayment Charge (ERC)

There are no Early Repayment Charges for this product.


Overpayments can be made at any time.

If an overpayment of £500 or more is made, we will recalculate the monthly payment the following month.


The amount we lend will be based on our assessment of affordability. Income multiple cap is 4.5 x first income plus 3.5 x second income or 4 x the joint income.


These mortgages are available on an interest only basis. Payments must be made monthly by direct debit.

Proof of Income

  • Last 3 months bank statements.
  • Completed Budget Planner.
  • Proof of pension income in retirement.
  • Certified photographic proof of identity.

We will also carry out electronic verification to prove the applicant’s identity, but we may also ask for further evidence of identity. This can include the applicant’s latest mortgage statement, certified proof of residency or other loan or card statements.

References may be taken up and credit searches will be made. Cases may be declined due to previous adverse credit or information that is not disclosed on the application form.

Age Limits

The minimum age is 55 for all applicants. There is no maximum age. Applicants must be already retired and reliant on pension income.

Loan Size 

Minimum loan size £25,000.
Maximum loan size £49,999 up to max 60% LTV
Other restrictions may apply in some cases.

Mortgage Term

There is no maximum term for this mortgage product.

Lasting Power of Attorney (LPA)

The Society recommends that borrowers have a Lasting Power of Attorney registered.

Acceptable Interest Only Repayment Strategy

Where required, the Society will accept life events such as the sale of the mortgaged property when either the 2nd borrower dies or moves into a care home as an acceptable repayment strategy.


We recommend that the applicant has buildings insurance on the property. It is not a requirement to buy any insurance through Buckinghamshire Building Society.


This product is portable, subject to our lending criteria at the time.

Property type

Standard construction houses or flats. For leasehold properties the Society requires a minimum unexpired period of 85 years at the time of purchase and at least 55 years unexpired lease remaining after the expected redemption date. Flats over 4 storeys may be considered on an individual basis but are not acceptable if they are local authority or ex-local authority. 

For new build properties the Society requires a minimum lease term of 125 years, a maximum starting ground rent of 0.1% of the property value and no unreasonable ground rent escalators or other event fees. 


Interest is calculated daily on the balance outstanding and added to the account the following month.