Additionally, since February 2019 six new providers have entered the space bringing the total number of lenders offering a RIO to 18, analysis from Moneyfacts has found.
The RIO got off to a slow start after the Financial Conduct Authority reclassified the product as a mainstream mortgage in March 2018. By July of the same year, there were just five products available from a choice of two providers.
Eleanor Williams, spokesperson at Moneyfacts.co.uk, said: “Historically, many older borrowers who had retired or were shortly due to do so, found it difficult to find a new mortgage deal.
“When the FCA reclassified RIOs as mainstream mortgages rather than equity release products in early 2018, a lifeline was thrown to many who may have previously felt trapped or not catered for.”