Later life mortgage lending rose with 33,130 new loans advanced to older borrowers in Q2, a 0.49% rise on the year before, according to UK Finance’s latest figures.
The total value was £5.2bn, up 3% year on year.
There were 5,830 new lifetime mortgages, an increase of 3.7% compared to the same quarter in 2024, with lending worth £520m, up 10.6%.
Retirement interest-only mortgages fell 2.6% to 305, with the value dropping 10.7% to £25m.
REACTION:
Richard Pike, chief sales and marketing officer at Phoebus:
“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.”
Simon Webb, managing director of capital markets and finance at LiveMore:
“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.”
