According to the latest UK Finance figures, the value of lending for this cohort came to £6.5bn, which is up nearly 25% on Q3 2024.
The report noted that there were around 6,040 new lifetime mortgages, up 3.4% year-on-year.
The value of new lifetime mortgages stood at £530m, a rise of 3.9% on Q3 last year.
Looking at retirement interest-only (RIO) deals, the number of loans advanced stood at 335, which is an increase of 11.7% year-on-year.
The value of RIO lending came to £30m, an increase of 11.1% on the same quarter last year.
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Residential later life loans in Q3 accounted for 7.84% of all residential loans, while buy-to-let (BTL) later life loans in Q3 made up 21.74% of all BTL loans.
Autumn Budget announcements will fuel ‘upward trajectory’ of later life lending
Simon Webb, managing director of capital markets and finance at LiveMore, said in light of the Chancellor’s Budget announcement yesterday, later life lending will “continue on this upward trajectory”.
He continued: “The highly anticipated ‘mansion tax’ will hit older homeowners considerably, leaving those who are asset-rich but cash-poor with significant outgoings. Plus, a continued freeze on income tax thresholds will result in an ever-greater number of pensioners paying income tax on their hard-earned pension pots.
“For more and more older people, releasing funds from their home will be the best way to enjoy a stress-free, supported retirement without moving. So, it’s never been more important for brokers to be aware of the options available to those looking for a later life lending product,” he added.
Webb noted that equity release “may be the best option for some customers, [while] a RIO mortgage, interest-only product or lifetime mortgage may work better for others.”
