UK Finance has published its later life mortgage lending update for Q1 2025, providing 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. The trends cover mainstream lending to older borrowers, as well as specialist products such as lifetime mortgages.
The latest data shows that there were 38,510 new loans advanced to older borrowers in Q1, up 33.5% year-on-year. The value of this lending was £6.1bn, which was up 42.6% annually.
There were 5,620 new lifetime mortgages advanced in Q1, up 11.1% year-on-year, totalling £530m, up 39.5% compared with Q1 2024.
There were 339 retirement interest-only mortgages advanced, up 19.4% year on year, with a total value of £33m, up 17.9%.
Residential later life loans in Q1 represented 7.6% of all residential loans, while buy-to-let later life loans represented 21.5% of all buy-to-let loans.
Richard Pike, chief sales and marketing officer at Phoebus, commented: “An increase in later life lending activity signals that older borrowers are continuing to take a more proactive approach to managing their finances — whether that’s through traditional mortgages, RIOs, or equity release products. In an environment where cost of living remains high, tapping into property wealth or restructuring existing borrowing is becoming an increasingly important part of later life planning.
“What’s notable is the continued diversification within this market. We’re seeing borrowers opt for a range of solutions depending on their needs — from managing interest-only mortgage maturities to helping family members onto the property ladder. As the market matures, technology, underwriting flexibility and adviser support will all be key to ensuring that later life lending continues to evolve in a responsible, sustainable way.”
Simon Webb, managing director of capital markets and finance at LiveMore, added: “It’s encouraging to see continued growth in later life lending, reflecting the evolving financial needs of people in their 50s and beyond. Whether it’s helping children onto the property ladder, funding lifestyle changes, or managing existing debt, older borrowers are increasingly seeking flexible, tailored solutions.
At LiveMore, we’re seeing strong demand across both mainstream and equity release products, driven by this shift. Our growth this year reflects the fact that many over-50s don’t fit the traditional lending mould and we’re proud to be developing solutions that work for them.”
