There are now 22 providers offering retirement interest-only lifetime mortgages, Moneyfacts data shows – the highest number recorded yet.

In February 2020, there were 18 providers in the market.

The number of Rio products available currently, Moneyfacts adds, has risen too – standing at 109 compared to 74 in February 2020.

The average rate of Rios has increased alongside provision over the last 12 months, though – the rate a year ago stood at 3.47 per cent and is now 3.59 per cent.]

This is an average across all fixed and variable products within the Rio category.

“While these changes seem small, these facts are notable for two reasons, says Moneyfacts finance expert Eleanor Williams. “First, Rio mortgages are a niche product with perhaps few borrowers for whom they are an appropriate option and make up only a small percentage of mortgage products overall, so any slight positive change impacts the sector.

“Second,” Williams continues, “providers withdrew swathes of mainstream mortgage products last year and choice remains considerably below that seen prior to the onset of the pandemic. These positive shifts in both the number of lenders and Rio deals are therefore great news for older borrowers.”

Williams adds: “Considering that FCA data indicates that there are a significant 40,000 interest-only mortgages due to mature each year between 2017 and 2032 where the borrower will be over 65 at the end of their term, improvements in provision for those who are concerned about their access to appropriate mortgage products as they come to end of their existing interest-only deal are likely to be well received.”