The latest UK Finance figures show that there were 33,130 new loans advanced to older borrowers during the period, a rise of 0.49% on Q2 last year.
The report found that there were 5,830 lifetime mortgages advanced in Q2, up 3.7% year-on-year, with the value of lending jumping 10.6% to £520m on the same period last year.
On the retirement interest-only (RIO) side, there were 305 such deals advanced in Q2, a drop of 2.6% year-on-year. The value of the lending came to £35m, a decrease of 10.7% on Q2 last year.
UK Finance said residential later life loans in Q2 represented 7.95% of all residential loans, while buy-to-let (BTL) later life loans made up 22.54% of all BTL loans.
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Later life lending growth shows how ‘vital’ market is
Simon Webb, managing director of capital markets and finance at LiveMore, said the latest figures showing the “overall growth in later life lending underline just how vital this market has become”.
He added that it also reflected what had been seen at LiveMore, as between January and June 2025, mortgage applications increased by 132% and completions by 58% versus the same time in 2024.
“With the recent interest rate cut offering a little relief for borrowers, we’re seeing more people explore the flexible mortgage options now available well into retirement. Later life lending is no longer a niche – it’s a fundamental part of the mortgage market.
“At LiveMore, our focus is on education and innovation, making sure advisers and their clients understand the full range of solutions beyond equity release, so older borrowers can make confident, informed choices about their financial future,” Webb added.
Richard Pike, chief sales and marketing officer at Phoebus, said the overall rise in later life lending comes as the market adjusts to the recent interest rate cut and continued cost-of-living pressures.
“It’s clear that more borrowers are turning to later life products to unlock flexibility and financial stability in retirement. For lenders, the challenge is meeting this demand efficiently and responsibly. Having the right technology in place to manage complex products, reduce costs and stay agile will be key to delivering good outcomes for older borrowers in a fast-changing market,” he noted.
