UK Finance later life mortgage lending update Q1 2025
Today, UK Finance has published its later life mortgage lending update for Q1 2025. 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 38,510 new loans advanced to older borrowers in Q1, up 33.5 per cent year on year. The value of this lending was £6.1bn, which was up 42.6 per cent compared with the same quarter a year previously.
There were 5,620 new lifetime mortgages advanced in Q1, up 11.1 per cent year on year. The value of this lending was £530mn, which was up 39.5 per cent compared with the same quarter a year previously.
There were 339 retirement interest only mortgages advanced in Q1, up 19.4 per cent year on year. The value of this lending was £33mn, which was up 17.9 per cent per cent compared with the same quarter a year previously.
Residential Later Life loans in Q1 represent 7.6 per cent of all residential loans. BTL Later Life loans in Q1 represent 21.5 per cent of all BTL loans.
Toby Leek, NAEA Propertymark President, comments:
“It is encouraging to see the mortgage landscape evolving and making better provision across the board, especially for people who are aged 50 plus.
“However, there are two sides to the coin to consider. This could also be down to underlying issues regarding the cost of living and how this might be impacting many older borrowers, specifically because they are having to delay paying off their mortgages until much later in life. In addition, shifts in consumer needs could also be down to factors such as higher interest rates and ever-increasing household bills making a substantial dent in affordability.”
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