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Scottish Building Society RIO Mortgage 5 Year Fixed

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RIO - 5 Yr Fixed (no fee)

  • Type Fixed
  • Rate 5.14%
  • APRC 6.90%
  • Free Valuation
  • Legal Fees Contribution
  • Free Application
  • Free valuation
  • £250 Contribution Towards Legal Fees*
  • 5-Year Early Repayment Charges
  • Maximum LTV - 50%


The Scottish Building Society was Scotland's first ever building society in 1848 and has grown over the years with local mergers. It is the only independent building society based in Scotland and can still claim to be a mutual building society. This mutual status attributes the philosophy of careful money management and promotion of home ownership to its 30,000 members via its website and six building society branches.

The Scottish Building Society offer a range of mortgages to residents of Scotland, one of them being this Retirement Interest Only Mortgage (RIO) that can help retirees borrow on a lifetime mortgage basis. This can be used for any purpose and also people looking to raise capital on owner occupied properties in Scotland.


Scottish Building Society's Retirement Interest Only Mortgage (RIO) is designed for owner occupiers over the age of 55.

Scottish Building Society will only lend on properties located in Scotland and northern England - for owner occupiers who have sufficient and stable income to meet their monthly interest-only mortgage payments.

Eligible income that is acceptable to Scottish Building Society includes pension income and other income that can be maintained into retirement at their discretion. The lender will take any existing financial commitments into consideration to calculate affordability.

As with other RIO Mortgages, for joint applications the last survivor needs to be able to demonstrate serviceability in their own right, should one party pre-decease them.
If the property is owned with joint occupancy, Scottish BS won't lend in a sole name, thus both occupiers should qualify for the RIO mortgage meeting both age and income requirements.

The maximum lending limit is 50% of the property value or purchase price, whichever is the lower. The minimum permitted loan is £30,000, with the overall maximum RIO mortgage being £500,000.

Please call 0800 088 5898 for your personalised Scottish Building Society RIO Mortgage Key Facts Illustration.


The Scottish Building Society RIO Mortgage is effectively a residential mortgage that can be utilised into retirement on a lifetime mortgage basis. It is income based and therefore will require verification of affordability by the lender. It can be used as a remortgage vehicle to generally raise additional cash in retirement, for whatever needs.

The amount borrowed is calculated using both income and property value criteria with the maximum mortgage being upto 50% of the property value. The loan is secured as a 1st charge on the property and monthly repayments of interest-only need to be maintained for the homeowners lifetime.

The Scottish Building Society Retirement Interest-Only mortgage is set up on an Interest-Only basis with no repayment vehicle being required. The RIO mortgage is not repayable until the last residing borrower has died or moved away into long-term care. The tranche of money borrowed, receives a 2-year discount off the standard variable rate, with no early repayment charges applying after this 2-year period. Monthly interest-only payments are required with the effect of maintaining the mortgage balance at the same level for the duration of the plan term. Over-payments of 10% per year are acceptable without penalty.

The Scottish Building Society are not members of the Equity Release Council and consequently their plans don't have the code of conduct applicable like other equity release schemes such as the no negative equity guarantee.


The Scottish Building Society RIO Mortgage facilitates owner occupiers to spend their tax-free cash as they wish, but with a view to protecting the equity in the home by making repayments of interest only. By maintaining these interest-only payments will result in the balance remaining level for the term of the mortgage.

There's also a range of 2-year discounted RIO's, with options of paying an application fee, or not. This rate comes no product fee

*For remortgages on properties located in Scotland, the Scottish Building Society will contribute £250 towards legal fees.

**the rate quoted above is a 5-year fixed rate of 5.49% - RIO mortgage deal

To obtain further information or to request a quotation on the Scottish Building Society RIO Mortgage, please contact the Equity Release Supermarket team on 0800 088 5898 today.

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