This is according to data from Moneyfacts.co.uk which revealed there are now 22 providers of these niche later life products, which is the highest number it has recorded so far.

Indeed, back in February 2019 there were 12 organisations providing RIOs, this rose to 18 in February 2020.

What’s more Coronavirus seems not to have hindered the development of new products with numbers rising steadily throughout the pandemic to reach a high of 111 in December 2020.

Moneyfacts also analysed RIO rates and found the average charged on a RIO deal was 3.59%. While this was an increase of 0.12% when compared to February 2020, the average rate had reduced over the last three months by 0.02% when compared to the 3.61% it had climbed to in November 2020.

Eleanor Williams, finance expert at Moneyfacts.co.uk, said it was ‘positive’ to see a rise in the choice of RIO products available for later-life borrowers.

She added: “While these changes seem small, these facts are notable for two reasons; firstly, 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.

“Secondly, 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 said it also offered a potential provision to the many borrowers whose interest-only mortgages were set to mature between 2017 and 2032 and who will be over 65 when this occurs.

“Overall, it is inherently positive that those considering a RIO mortgage now have not only a greater choice of products, but also from a greater choice of lenders,” Williams added.