Our customer application data for Retirement Interest Only (RIO) has revealed a 50% increase in the number of people who are  looking to use the mortgage funds for home improvements.

When applying for a RIO, people are asked the reason they are taking the mortgage, this year we’ve seen that 50% more are planning to use the funds for home improvements, compared with the same period in the previous year.

Similarly, the number of people looking to gift money to a family member using funds from a RIO has seen a significant rise, with 80% more people who applied for a RIO in 2021 stating that it’s for a family gift.

Emma Graham, Business Development Director at Hodge, said: “RIOs continue to be a popular product for our intermediaries’ clients, with more looking on it as a perfect stepping-stone product for those who want to enjoy their later life.

“What is interesting from this data is that more RIO customers are using the funds to improve their homes since the pandemic began. The lockdowns mean that more people are spending time in their homes and understandably looking at ways to improve their surroundings. Equally, a lot of people who are now considering working from home longer-term are looking to invest in a good home office space.

“The increase in the number of people wanting to gift funds to family also seems to be a result of the pandemic – maybe absence and the lack of seeing our family, makes the heart more generous as well as fonder?”

Emma added: “Whatever the reasons, it is encouraging for us to see that the RIO is doing what it is designed for, giving options. It allows customers the benefit of using the value in their property to fund further home improvements, as well as financially help their family and friends.”

We were one of the first lenders to launch a RIO mortgage in 2018, it sits alongside our 50+ Mortgage which offers a product with a fixed term of up to 41 years. Both also benefit from our Early Repayment Promise meaning should your clients wish to sell up and repay from the proceeds we won’t charge early repayment charges, from day one – for more info on the range click here.

We love a case with a story, if you want to talk to a BDM give us a call on 0800 138 9109.