The variety of loans superior to older debtors in the second quarter of this 12 months was up marginally 12 months on 12 months, in accordance to the most recent later life mortgage lending figures, although the worth of lending elevated extra considerably.
The information from UK Finance discovered that 33,130 new loans had been issued to debtors over the age of 55, up simply 0.49% on Q2 final 12 months, whereas the worth of lending was £5.2bn, up 3% because the identical interval in 2024.
There had been 5,830 new lifetime mortgages superior in Q2, up 3.7% 12 months on 12 months. The worth of this lending was £520m, a rise of 10.6% in contrast with the identical quarter a 12 months earlier.
However, retirement curiosity solely (Rio) mortgages had been down 2.6% year-on-year in Q2, with the worth of lending having dropped 10.7% from the 12 months earlier than to £25m.
Residential later life loans in Q2 represented 7.95% of all residential loans, whereas buy-to-let later life loans represented 22.54% of all BTL loans, the info discovered.
Phoebus chief gross sales and advertising and marketing officer at Phoebus says: “The total rise in later life lending comes because the market adjusts to the current rate of interest minimize and continued cost-of-living pressures. It’s clear that extra debtors are turning to later life merchandise to unlock flexibility and monetary stability in retirement.
“For lenders, the problem is assembly this demand effectively and responsibly. Having the precise expertise in place to handle advanced merchandise, scale back prices and keep agile will probably be key to delivering good outcomes for older debtors in a fast-changing market.”
