There were 41,100 new loans advanced to borrowers over age 55 in Q4 2025, up 15.1% year-on-year, according to the latest quarterly data from UK Finance.
The value of this lending was £6.8bn, up 20.5% compared with the same quarter a year previously.
There were 5,700 new lifetime mortgages advanced in Q4, unchanged from the same quarter a year earlier and down 5.6% compared to Q3. The value of this lending was £510mn.
There were 388 retirement interest-only mortgages advanced in Q4, up 13.1% year-on-year, with a total value of £36mn, up 2.9%.
Residential later life loans in Q4 represented 8.02% of all residential loans and buy-to-let later life loans represented 21.4% of all buy-to-let loans.
Richard Pike, chief sales and marketing officer at Phoebus Software, commented: “The rise in later life lending announced by UK Finance reflects the growing importance of this sector within the wider mortgage market. Today’s figures show that later life lending accounted for 8% of all residential mortgage lending in Q4 2025.
“With people living longer and facing more complex financial needs in later life, these products provide a crucial solution for those looking to unlock property wealth. This is no longer a niche area, and the Financial Conduct Authority has set out plans for a focused later life lending market study.
“While some mainstream lenders are starting to offer later life products, the sector’s growth is being led by specialist lenders, and we’re hearing from our account servicing clients that they expect the market to continue to grow in 2026.”
David Forsdyke, head of later aife finance at Knight Frank Finance, said: “The 15% rise in lending to older homeowners reflects a structural shift in how later life is funded. Many people are asset rich but cash poor after decades of house price growth, yet pension provision and savings have not kept pace. Buyers are also purchasing their first homes later and taking longer mortgage terms, which means borrowing now routinely extends into retirement.
"At the same time, equity release lifetime mortgage lending has remained flat year-on-year. That tells us the later life lending market is broadening beyond traditional equity release and becoming a more mainstream form of borrowing. Older homeowners are increasingly using standard mortgages, retirement interest-only products and other structured solutions as part of financial planning, rather than turning to equity release.
"Longer life expectancy means retirement resources must last longer, while many people prefer to remain in their homes rather than downsize. We are also seeing more clients access property wealth to support children and grandchildren, or to plan proactively around inheritance tax. Borrowing in later life is becoming normalised, and we expect that trend to continue as attitudes continue to evolve.”
