Beverley Building Society has reported a significant increase in demand for its Retirement Interest Only (RIO) mortgage as more borrowers seek flexible lending options in later life.

The growth comes as the later life lending market continues to expand. According to UK Finance data for the first quarter of 2026, 353 retirement interest-only mortgages were advanced during the period, an increase of 5.4% compared with the same quarter a year earlier. The total value of lending reached £33 million.

Beverley Building Society said it has responded to growing demand through the launch of its RIO Lifetime Discount Mortgage, which has been designed to provide greater flexibility for borrowers in retirement.

The product offers no early repayment charges and includes a joint affordability assessment, allowing applications to be assessed using household income rather than relying solely on an individual borrower’s income.

The mutual said this approach can help address one of the common challenges associated with retirement interest-only lending and broaden access to borrowing for customers whose financial circumstances may not fit more traditional criteria.

The society said the increase in applications reflects a growing requirement for lending solutions that support borrowers looking to remortgage, release equity or supplement their finances during retirement.

Stu Bryce, head of new business at Beverley Building Society, said: “We’re seeing more brokers recognising the value of flexible RIO solutions.

“Our approach, including joint affordability and no early repayment charges, is designed to remove common barriers and better reflect customers’ real financial positions.

“As a mutual, our focus remains on supporting brokers and helping more people secure sustainable lending in later life.”