According to Hodge, completion data between January and July, RIO customers using funds raised to support family members had contracted from 14 per cent in the first half of last year to seven per cent in the same period this year.
RIO customers using the funds for debt consolidation have grown by around four per cent compared to the same period last year.
Earlier this year, the lender said that the number of applications for RIO mortgages grew by around 850 per cent since it entered the RIO market around five years ago.
The firm has recently tripled its maximum loan size to £1.5m, upped its maximum loan size to 75 per cent and lowered the maximum age from 55 to 50-years-old.
Emma Graham (pictured), business development director for mortgages at Hodge, said: “It’s really important for us to understand what matters to our customers so we can continue to develop our propositions to support them in the moments that matter.
“These latest figures show a change in customer behaviour, impacted by current socio-economic pressures.”
She added: “There is certainly no ‘one size fits all’ when it comes to a later life customer, with some using the product to plan for their retirement, and others looking to refinance an existing interest only mortgage or to plan for inheritance purposes.
“RIOs may be niche, but they remain pivotal in providing a solution for a growing number of more mature borrowers in today’s market. From what we’ve seen by staying close to customer stories, we certainly think this is the case.”
