The number of retirement interest-only products available on the market has increased significantly since February this year, says Moneyfacts.

Data from the finance website shows that in February 2020 there were 74 products for borrowers to choose from, whereas this figure stands at 112 today.

And in February 2019, there were just 38 on offer.

At the same time, the number of providers with RIOs on their product sheets has increased at a far more gentle pace – from 18 in February this year to 21 today.

The average rate, meanwhile, has gone up from 3.47 per cent to 3.59 per cent over the same time frame.

Earlier this month, Responsible Life released data that showed RIOs made up just 0.14 per cent of purchase and remortgage mortgages sold in the year to June 2020, branding them “an outright failure”.

Moneyfacts finance expert Eleanor Williams says: “It seemed to take some time for providers to react to the FCA’s directive in March 2018 to support older borrowers’ mortgage needs, and our records show that only two providers had launched a total of five RIO products by July 2018, rising to 12 providers with 38 deals available in February 2019.

“However, competition in this sector has increased recently; there are now 21 providers active – the highest we have recorded so far – with three lenders entering this section of the market since February 2020.

“Overall, provision of RIO mortgages seems to have weathered the storm of the Coronavirus pandemic slightly better than the standard residential mortgage sector, as we see growth in both the number of products and number of providers lending in this arena, seeming to show that lenders have the appetite to offer products for those later in life.”