The number of retirement interest-only mortgage products has almost doubled year on year from 38 to 74, figures from Moneyfacts show.

Providers began offering the products after the FCA’s directive in March 2018 which reclassified this type of lending under the mainstream mortgage banner instead of equity release.

It took a while for lenders to bring the products out as there were only providers in the market by July 2018.

Over the past year the average rate on a RIO has come down slightly from 3.5 to 3.47 per cent.

Moneyfacts finance expert Eleanor Williams says: “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.

“According to recent research from Ipswich Building Society, 60 per cent of borrowers over the age of 50 felt that there were fewer mortgage products available to them compared to younger mortgage applicants, and more than half believed that they had fewer mortgage providers to choose from.”

Williams adds: “Those looking to take advantage of a RIO mortgage deal should consider their next steps carefully. 

“Lifetime mortgages and equity release products may also be available, and so seeking independent financial advice could be invaluable in ensuring you select the right product for your circumstances.”