Later life mortgage lending experienced significant growth with 38,510 new loans advanced to borrowers over 55 in Q1 2025, up 33.5% on the same quarter last year, data from UK Finance revealed.
The value of this lending reached £6.1bn, a rise of 42.6% year on year. Lifetime mortgages also increased, with 5,620 new loans, up 11.1%. The value of these was £530m, up 39.5% from a year before.
There were 339 new retirement interest only mortgages in Q1, up 19.4% year on year, with a value of £33m, a rise of 17.9%.
Residential later life loans made up 7.6% of all residential loans and buy-to-let later life loans represented 21.5% of all buy-to-let loans.
Richard Pike, chief sales and marketing officer at Phoebus, said: “An increase in later life lending activity signals that older borrowers are continuing to take a more proactive approach to managing their finances — whether that’s through traditional mortgages, RIOs, or equity release products.
“In an environment where cost of living remains high, tapping into property wealth or restructuring existing borrowing is becoming an increasingly important part of later life planning.
“What’s notable is the continued diversification within this market. We’re seeing borrowers opt for a range of solutions depending on their needs — from managing interest-only mortgage maturities to helping family members onto the property ladder.”
Pike added: “As the market matures, technology, underwriting flexibility and adviser support will all be key to ensuring that later life lending continues to evolve in a responsible, sustainable way.”
Simon Webb, managing director of capital markets and finance at LiveMore, said: “It’s encouraging to see continued growth in later life lending, reflecting the evolving financial needs of people in their 50s and beyond.
“Whether it’s helping children onto the property ladder, funding lifestyle changes, or managing existing debt, older borrowers are increasingly seeking flexible, tailored solutions.
“At LiveMore, we’re seeing strong demand across both mainstream and equity release products, driven by this shift.”
Webb added: “Our growth this year reflects the fact that many over-50s don’t fit the traditional lending mould and we’re proud to be developing solutions that work for them.”
