Vernon Building Society has reported a 158% increase in its retirement interest-only (RIO) mortgages from Jan to May 2025 compared to the same period in 2024.

According to the society,the trend for retirees to access the wealth tied up in their property to fund retirement or help children onto the housing ladder, via an RIO mortgage, has gathered pace.

Referring to RIOs as a more flexible and potentially lower costs alternative to equity release, Vernon BS’s range of RIO mortgages are available to borrowers over the age of 55 across England and Wales who either want to purchase a home or release cash from the equity in their home.

Commenting on the current market, Vernon head of mortgage and savings distribution Brendan Crowshaw 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.”