UK Finance Later Life Mortgage Lending Update Q4 2024
UK Finance has published its later life mortgage lending update for Q4 2024. The report provides a quarterly insight into mortgages taken out by borrowers over the age of 55, the trends in lending, and demographics of those accessing the market. These trends cover mainstream lending to older borrowers, as well as specialist products such as lifetime mortgages.
Key data highlights:
There were 35,840 new loans advanced to older borrowers in Q4, up 28.2 per cent year on year. The value of this lending was £5.6bn, which was up 38.6 per cent compared with the same quarter a year previously.
There were 5,700 new lifetime mortgages advanced in Q4, up 6.7 per cent year on year. The value of this lending was £510mn, which was up 24.4 per cent compared with the same quarter a year previously.
There were 343 retirement interest only mortgages advanced in Q4, up 35.6 per cent year on year. The value of this lending was £35mn, which was up 34.6 per cent per cent compared with the same quarter a year previously.
Residential Later Life loans in Q4 represent 7.8 per cent of all residential loans. BTL Later Life loans in Q4 represent 21.8 per cent of all BTL loans.
Toby Leek, NAEA Propertymark President, comments:
“Even with interest rates at relatively high levels, this report demonstrates that older people still feel confident enough to borrow money to finance their future home purchases. This trend is being reflected across all buyers, with the Bank of England’s Money and Credit Report for December 2024 finding that net mortgage approvals increased to 66,500 in December. However, with the economic landscape remaining reasonably unsettled, many people’s finances may be stretched meaning they need to borrow for longer, not out of choice but out of need.
“Much of the country will now be eagerly awaiting interest rates to track downward so that mortgages can continue to become more affordable allowing others the chance to make their next home moves a reality.”
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