Later life mortgage lending increases 28%

Latest quarterly figures from UK Finance has found that later life mortgages lending increased 28.2 per cent year on year.

The data indicated that there were 35,840 new loans advanced to older borrowers in Quarter 4 (Q4) with the value of this lending was £5.6bn, which was up 38.6 per cent compared with the same quarter a year previously.

There were 5,700 new lifetime mortgages advanced in Q4, up 6.7 per cent year on year. The value of this lending was £510mn, which was up 24.4 per cent compared with the same quarter a year previously.

There were 343 retirement interest only mortgages advanced in Q4, up 35.6 per cent year on year. The value of this lending was £35mn, which was up 34.6 per cent per cent compared with the same quarter a year previously.

Residential Later Life loans in Q4 represent 7.8 per cent of all residential loans. BTL Later Life loans in Q4 represent 21.8 per cent of all BTL loans

Commenting in the data,Equity Release Council Chief Executive Officer Jim Boyd said “While volumes were not as buoyant as some might have hoped in 2024, the work that was undertaken on product development, systems and engagement will be invaluable as we move into 2025. The market has started to turn a corner and there is real cause for optimism as to what can be achieved this year.

“Interest rates have started to fall and even with higher than targeted inflation, the recent decision in February should start to build consumer confidence.

“If the growth seen in 2024 gains momentum, we anticipate that we will see more customers comfortable with considering accessing their housing equity to support a diverse range of different needs.”

Simon Webb, Managing Director of capital markets and finance at LiveMore, said “It’s encouraging to see later life lending on the rise, reflecting both growing borrower demand and increased awareness of the role later life lending can play in financial planning. As a lender dedicated to serving the over-50s, we’re also seeing strong growth, with more homeowners looking for flexible mortgage options that align with longer working lives and evolving retirement needs.

“The market must continue to adapt to ensure older borrowers have access to the right products, enabling them to make the most of their financial future. At LiveMore, we take our responsibility to this group seriously – the LiveMore Mortgage Matcher® helps brokers identify suitable solutions for borrowers in a multitude of different circumstances, enabling brokers to provide financial stability and peace of mind for borrowers.”