The value of later life mortgage lending to borrowers over the age of 55 reached £5.2bn in Q2, a level 3% up on the same quarter last year.

According to figure published by UK Finance, a total 33,130 new loans were advanced to older borrowers in Q2, which was up 0.49% on Q2 2024.

Within the total, there were 5,830 new lifetime mortgages advanced in Q2, up 3.7% on lats year, with the value of this lending hitting £520m, up 10.6% year-on-year.

The banking trade body’s figures also revealed there were 305 retirement interest only mortgages advanced in Q2, a figure down 2.6% compared to last year. The value of this lending reached £25m, which was a decline of 10.7% from Q2 last year.

Managing director of capital markets and finance at LiveMore, Simon Webb, commented: “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.

“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.”

President of NAEA Propertymark, Mary-Lou Press, added: “Any uplift in new loan advances and lending volume is a defined sign of consumer affordability within this age demographic.

“However, it is important to view this news with balance and perspective. While it is positive lenders are confident to better serve this age group than ever before, it can also be a case that tough decisions are being made by people who are finding affordability a challenge earlier in life and considering taking finance over longer periods than any point previously.

“Hopefully, the gradual easing of base rates will lead to more affordable mortgage products for all borrowers in due course.”

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