Mortgages to older borrowers increased to £28.1bn in 2021

New figures from UK Finance has indicated the highest annual volume, and value, of mortgages to borrowers aged over 55 since 2014 occurred last year, according to UK Finance’s latest later life mortgage lending report.

The report found that there were 187,120 new mortgages to borrowers aged 55 years and over completed during 2021, totalling £28.1 billion over the year. Representing an 11% increase in mortgage volumes compared to 2020, and a 22% increase in the value of lending.

The increase in lending to older borrowers was spurred by the stamp duty holiday, which drove homeowners of all ages across the UK to either move or buy a second property.

Lending slowed over the fourth quarter, however, with 44,590 new mortgages arranged for those over the age of 55, and lending totalling £6.8bn, representing a 2.6% decline in mortgage volumes compared to quarter three, and a 3.6% drop compared to the same quarter last year. The quarterly decline was driven primarily by the end of the stamp duty holiday in September.