The market for the retirement interest-only mortgage (RIO) has expanded in the past 12 months as product numbers increased from 36 to 74 and the average interest rate fell from 3.50 per cent to 3.47 per cent.
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.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
