(LT36) 5 year 4.89% Fixed until 30.06.2029 RIO

This mortgage comes with an interest rate of 4.89% fixed until 30.06.2029 followed by our Standard Variable Rate for the remainder of the term, currently 8.10%.


(LT36) 5 year 4.89% Fixed until 30.06.2029 RIO

Initial rate


Subsequent Rate (SVR)


Overall cost for comparison

7.20% APRC

Maximum loan to value (LTV)




Arrangement Fee

No fee

Early repayment charge


Is this product right for you?

What are the key features of this product?

This is a fixed rate mortgage product which means monthly payments will not go up or down during the term of the fixed period. This is different to a discount rate product. The rate of interest is not linked to the Society’s Standard Variable Rate (SVR) for mortgages. During the first 5 years the interest rate charged will be fixed at 4.89%

Three months before this product ends, we will contact you with the options available. If you do nothing at the end of the product period, you will move to the Society’s SVR which may mean your payments increase.

This product is available on:

  • An Interest-Only repayment basis. This means that your monthly repayments will only pay back the interest on your initial loan amount. The capital balance will not reduce.

Designed to be repaid by the sale of the property after the death of the last borrower.

This product is available for properties in England and Wales.

There is no fee payable for setting up this mortgage.

This product is available for loans of at least £50,000 and up to £500,000.

This product requires all borrowers to be at least 55 at date of application.

This product has no maximum age for borrowers.

Who is this product designed for?

This product is designed for customers over the age of 55, not wanting a specific term on a residential mortgage, who:

  • are currently retired and drawing a pension or are intending to retire in the next 2-5 years.

  • are looking to purchase or remortgage a property.

  • have at least a 50% deposit/equity in their property.

  • are happy to fix their payments now and have certainty that payments will not change until the end of the fixed period.

  • do not intend to make overpayments of more than 10% in any of the first 5 years.

Who is this product NOT intended for?

This product is not intended for customers who:

  • are not currently retired or planning to retire in the next 2-5 years.

  • want their monthly payments to change with the Society's SVR for the term of the product.

  • want a Capital & Interest repayment type.

  • plan to repay more than 10% of the loan in any year within the first 5 years as this will result in a charge.

Does this product deliver "fair value" for customers?

Being a mutual building society, all our products are priced to balance the needs of our Member savers and borrowers and the Society’s operating costs to support the Society’s long-term future.

We support our mortgage customers by providing each applicant with a bespoke, personal, and individual approach. We largely deal with people whose circumstances do not fit into the standard requirements of automated decision-making processes used by larger lenders.

We believe this product represents fair value for the customers it was designed for considering the customer support provided before, during and after the application.

Product Summary

Initial Rate

4.89% fixed until 30.06.2029 followed by our Standard Variable Rate for the remainder of the term, currently 8.10%.

Fee Details

No fee

Maximum LTV


Loan Size

Minimum £50,000 - Maximum £500,000

Mortgage Term

There is no mortgage term, and the mortgage would continue for as long as you permanently occupy the property. The mortgage would continue until the date of sale/repayment by you or the Executor of your Estate. It would only need to be repaid after a Repayment Event has occurred.

Age Restrictions

All borrowers to be at least 55 (at date of application)

No maximum age


This mortgage product is portable to a new residential mortgage on a different property when the new mortgage is taken out simultaneously with the repayment of the existing mortgage. You would need to meet our credit and affordability requirements for the new mortgage, the new property would need to be acceptable to us, and approval of a new mortgage would be subject to our prevailing Lending Policy.

Repayment Method


Monthly payments of interest will be required for the period of the mortgage


This product comes with a free basic valuation (up to the value of £1,000) of the property you are purchasing.

Repayment Event

A Retirement Interest-Only Mortgage is provided on the basis that the Repayment Strategy for eventual repayment of the amount owing is the sale of the mortgaged property. 

The ability to arrange a sale of the property and the repayment of the mortgage would remain within the control of the owner/borrower until a Repayment Event occurs.

This mortgage does not have a specified Mortgage Term or Repayment Date. We will only require full repayment within 6 months of a Repayment Event. A Repayment Event is defined as when:

- The property is permanently vacated, where this arises from both owners/borrowers or the final surviving owner/borrower (or the owner/borrower if it is in one name only) moving to reside in another property, or entering sheltered accommodation or long-term care

- The date of death of the final surviving owner/borrower (or the owner/borrower if it is in one name only)


Lending restricted to England and Wales.

This product is available for purchases and remortgages.

Minimum property valuation £140,000.

Borrowers must be already retired and drawing their pension or are planning to retire within the next 2-5 years.

Early Repayment Charge Details

A full or partial capital repayment, which exceeds 10% of the capital balance amount in any one year during the fixed period, will attract an early repayment charge of:

5% until 30.06.2025
4% until 30.06.2026
3% until 30.06.2027
2% until 30.06.2029

This will not be charged if the sale of the property and repayment of the mortgage is related to the death of the borrower, or if a joint mortgage, the death of the final surviving borrower.

Representative Example

A mortgage of £53,711.00, payable over 25 years, on an interest-only repayment basis, initially on a fixed rate of 4.89% until 30.06.2029, and then on our Standard Variable Rate, currently 8.10%, for the remaining 20 years. The initial term would require 64 monthly payments of £218.87 followed by 236 monthly payments of £362.55.

The total amount payable would be £153,700.48, made up of the loan amount (£53,711.00), plus interest (£99,569.48), Solicitor Fee (£250), Funds Transfer Fee (£15), and a Mortgage Exit Fee (£155).

The overall cost for comparison is 7.20% APRC.

This information may not be representative of your personal circumstances and your payments may differ from this. Representative data as of 1st January 2023.

Fair Value Assessments Supplementary Information


We are required to assess each of our products to determine whether it provides fair value to customers. The outcome of these individual assessments can be found in the above product information. 

Further information can be found in our supplementary information document, linked below.


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