Legal & General has added a retirement interest-only (RIO) mortgage to its range of later life lending products.

It is available to those with a minimum property value of £100,000 and homeowners can borrow up to 60 per cent of the value of their home.

The affordability assessment will be based on the borrower’s income and outgoings, both now and at the point they are no longer working, if they are not already retired.

The eligibility assessment will be based on the lowest income of any joint application to ensure the remaining borrower can afford repayments.

Claire Singleton, CEO of Legal & General Home Finance, said: “There is no longer such a thing as a ‘one size fits all’ retirement, and recent months have shown that plans need to be resilient, but flexible.

“As such, it’s important that the industry adapts in order to provide a truly diverse range of later life lending options that allow people to make the most of their retirement.”

She added: “At Legal & General, we want to give people a variety of options to access money from their homes, without having to move.”