Beverley Building Society has expanded its later life proposition with the launch of a new Retirement Interest-Only (RIO) Lifetime Discount Mortgage designed to provide borrowers with a stable, long-term repayment structure.

The launch comes as research from the Equity Release Council shows that in Q1 2025 43% of new lifetime mortgages were taken out on a single life basis – the highest level in over a year.

Additionally, nearly seven in 10 (68%) of new single life customers were women, marking a new high watermark for that demographic across the Council’s historical data.

The Society said the new product updates its existing Later Life – and specifically RIO – mortgage offering.

LIFETIME DISCOUNT

With the RIO Lifetime Discount Mortgage, affordability is assessed on a joint-life basis rather than considering just one party, which it said offers a more inclusive approach and increases the likelihood of clients meeting requirements.

Unlike a standard RIO mortgage with a discounted term, the product provides a lifetime discount and has no early repayment charges, giving borrowers the flexibility to repay at any time.

In line with its manual underwriting approach, Beverley Building Society will use existing and projected pension income and will also consider income from properties and investments when assessing individual applications.

Eligibility criteria include a minimum age of 55, up to two borrowers per application, a maximum loan-to-value of 60%, and a minimum property value of £125,000.

JOINT LIFE AFFORDABILITY

Kat Kitson, head of member experience at Beverley Building Society, says: “Our new RIO Lifetime Discount Mortgage reflects the Beverley’s commitment to giving later-life borrowers more flexibility, more certainty, and a more human approach to lending.

“By assessing affordability on a joint-life basis, we’re opening the door for more couples to secure the stable, long-term payment plan they need.

“At a time when the later-life market is evolving quickly, we’re proud to offer a product that puts fairness, flexibility and individual understanding at its core.

“With a Lifetime Discount RIO Mortgage, we’re with your clients for life.”