The total value of UK later life mortgage lending jumped by 24.7% year-on-year in Q3, according to new figures released by UK Finance.

The value of this lending totalled £6.5bn, made up of a total 39,950 new loans, a figure up 18.4% on the same period last year.

Within the total, UK Finance revealed there were 6,040 new lifetime mortgages advanced in Q3, up 3.4% on Q3 last year. The banking trade body revealed the value of this lending reached £530m, which was up by 3.9%.

There were also 335 retirement interest only mortgages advanced in Q3, up 11.7% year-on-year, totalling £30m in lending, a figure up by 11.1%.

Across the later life lending market, residential later life loans represented 7.84% of all residential loans in Q3. By comparison, buy-to-let (BTL) later life loans accounted for 21.74% of all BTL loans.

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

“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.”

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