Vernon Building Society has reported a 158% increase in its retirement interest-only (RIO) mortgages from Jan to May 2025 in comparison with the identical interval in 2024.
According to the society,the pattern for retirees to entry the wealth tied up in their property to fund retirement or assist kids onto the housing ladder, through an RIO mortgage, has gathered tempo.
Referring to RIOs as a extra versatile and probably decrease prices different to fairness launch, Vernon BS’s vary of RIO mortgages can be found to debtors over the age of 55 throughout England and Wales who both wish to buy a house or launch money from the fairness in their house.
Commenting on the present market, Vernon head of mortgage and financial savings distribution Brendan Crowshaw stated:
“We’ve seen a bounce in recognition for our RIO mortgage vary as extra individuals in retirement need to borrow towards the worth of their house while making month-to-month curiosity funds. RIO mortgages have gotten more and more widespread as individuals stay longer and face rising residing prices. For many, they supply the soundness wanted to funds with confidence – whereas additionally providing larger certainty of leaving an inheritance.”
