Over 70s lending increases by 10%

Later life mortgage lending continues to rise with people over 70 lending increasing by almost 10% according to latest UK Finance data. The data shows that £570 million pounds of lending was to borrowers over 70 up by 9.62%.

Meanwhile there were 33,130 new loans advanced to borrowers over 55 in Q2 2025 – up 0.49% year on year.

The data also showes that there were 1,180 residential loans taken out by retirees, an increase of 1.72% year on year.

Clare Stinton, Head of Workplace Saving Analysis at Hargreaves Lansdown said “Later life lending is on the rise and it’s changing the way we need to think about retirement. New data from UK Finance shows that 33,130 new mortgages were taken out by over 55s between April and June, up 0.49% year-on-year. This is a slower pace than earlier in the year but still pushing borrowing deeper into retirement.

“HL’s latest Savings & Resilience Barometer reveals only 43% of households have enough pension savings for an adequate retirement income and the potential for paying mortgages into retirement makes this even more challenging. In Q2 of 2025 alone, 4,780 residential mortgages worth £570 million were taken out by borrowers over the age of 70. Some will be choosing to work longer or part-time, others may plan to use the tax-free cash from their pension to chip away at the debt. Either way, it’s a financial burden that previous generations rarely carried into retirement.

“This trend looks set to continue, with house costs sky-high, younger buyers are getting onto the property ladder later in life and often with longer mortgage terms. Paying a mortgage into our 60s, or beyond, could soon become the new normal. It makes an even stronger case for paying into your pension as early as possible, the more you put in now, the more time compound growth has to do the heavy lifting for you.”

Simon Webb, Managing Director of capital markets and finance at LiveMore, said “The latest figures showing overall growth in later life lending underline just how vital this market has become and reflects the growth we’ve also seen at LiveMore. Between January and June 2025, LiveMore mortgage applications increased by 132% and completions by 58% versus the same time in 2024.

“With the recent interest rate cut offering a little relief for borrowers, we’re seeing more people explore the flexible mortgage options now available well into retirement. Later life lending is no longer a niche – it’s a fundamental part of the mortgage market. At LiveMore, our focus is on education and innovation, making sure advisers and their clients understand the full range of solutions beyond equity release, so older borrowers can make confident, informed choices about their financial future.”