The quantity of loans superior to older debtors in the second quarter of this 12 months was up marginally 12 months on 12 months, in accordance with the newest later life mortgage lending figures, although the value of lending elevated extra considerably.
The knowledge from UK Finance discovered that 33,130 new loans have been issued to debtors over the age of 55, up simply 0.49% on Q2 final 12 months, whereas the value of lending was £5.2bn, up 3% for the reason that similar interval in 2024.
There have been 5,830 new lifetime mortgages superior in Q2, up 3.7% 12 months on 12 months. The value 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 have been down 2.6% year-on-year in Q2, with the value 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 information 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 fitting know-how in place to handle advanced merchandise, cut back prices and keep agile might be key to delivering good outcomes for older debtors in a fast-changing market.”
