The number of loans advanced to older borrowers in the second quarter of this year was up marginally year on year, according to the latest later life mortgage lending figures, though the value of lending increased more significantly.
The data from UK Finance found that 33,130 new loans were issued to borrowers over the age of 55, up just 0.49% on Q2 last year, while the value of lending was £5.2bn, up 3% since the same period in 2024.
There were 5,830 new lifetime mortgages advanced in Q2, up 3.7% year on year. The value of this lending was £520m, an increase of 10.6% compared with the same quarter a year earlier.
However, retirement interest only (Rio) mortgages were down 2.6% year-on-year in Q2, with the value of lending having dropped 10.7% from the year before to £25m.
Residential later life loans in Q2 represented 7.95% of all residential loans, while buy-to-let later life loans represented 22.54% of all BTL loans, the data found.
Phoebus chief sales and marketing officer at Phoebus says: “The overall rise in later life lending comes as the market adjusts to the recent interest rate cut and continued cost-of-living pressures. It’s clear that more borrowers are turning to later life products to unlock flexibility and financial stability in retirement.
“For lenders, the challenge is meeting this demand efficiently and responsibly. Having the right technology in place to manage complex products, reduce costs and stay agile will be key to delivering good outcomes for older borrowers in a fast-changing market.”
Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by finopulse.
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