Vernon Building Society saw a 158% increase in its retirement interest-only (RIO) mortgages from January to May 2025 compared to the same period last year.
The lender said more retirees chose RIO mortgages to unlock the value in their homes, either to fund retirement or help family onto the housing ladder.
Brendan Crowshaw (pictured), head of mortgage and savings distribution at Vernon Building Society, said: “We’ve seen a jump in popularity for our RIO mortgage range as more people in retirement are looking to borrow against the value of their home whilst making monthly interest payments.
“RIO mortgages are becoming increasingly popular as people live longer and face rising living costs.
“For many, they provide the stability needed to budget with confidence – while also offering greater certainty of leaving an inheritance.”
Crowshaw added: “The Vernon accepts applications from customers who have a lasting power of attorney in place.
“Additionally, we support those with complex incomes, so in the case of RIO, we look at different pension types and drawdown periods, and other income, which aligns with Vernon’s ethos of offering flexible and inclusive lending.”
