Later life mortgage lending saw an increase in activity in Q3 2025, with 39,950 new loans advanced to older borrowers, up 18.4% year on year, according to the latest data from UK Finance.
The value of this lending reached £6.5bn, an increase of 24.7% compared to the same period last year.
There were 6,040 new lifetime mortgages, up 3.4% year on year, totalling £530m, up 3.9%.
Retirement interest only mortgages stood at 335, up 11.7%, with the value reaching £30m, up 11.1%.
Residential later life loans made up 7.84% of all residential loans in the quarter, while buy-to-let (BTL) later life loans accounted for 21.74% of all BTL loans.
Simon Webb, managing director of capital markets and finance at LiveMore, said: “In light of the Chancellor’s budget announcement yesterday, we can expect to see later life lending continue on this upward trajectory.
“The highly anticipated ‘mansion tax’ will hit older homeowners considerably, leaving those who are asset-rich but cash-poor with significant outgoings.
“Plus, a continued freeze on income tax thresholds, will result in an ever-greater number of pensioners paying income tax on their hard-earned pension pots.”
Webb added: “For more and more older people, releasing funds from their home will be the best way to enjoy a stress free, supported retirement without moving.
“So, it’s never been more important for brokers to be aware of the options available to those looking for a later life lending product.
“While equity release may be the best option for some customers, a RIO mortgage, interest-only product or lifetime mortgage may work better for others.”
He said: “At LiveMore, we offer a full range of later life mortgage products, enabling older borrowers to free up funds with confidence and peace of mind.”
