Borrowing by older homeowners grows across mainstream and specialist products
Later life mortgage lending to borrowers aged 55 and over increased in the fourth quarter of 2025, with 41,100 new loans advanced at a total value of £6.8 billion, according to UK Finance’s latest data. This represented annual growth of 15.1% by volume and 20.5% by value.
The figures, drawn from UK Finance’s later life mortgage lending update for Q4 2025, cover both mainstream lending to older borrowers and specialist products such as lifetime and retirement interest-only (RIO) mortgages.
In the lifetime mortgage segment, there were 5,700 new advances in the quarter. This matched the number recorded in the same period a year earlier but was 5.6% lower than in Q3 2025. The value of these loans came to £510 million.
RIO lending also expanded. A total of 388 retirement interest-only mortgages were completed in Q4, an increase of 13.1% on the previous year. The value of this lending was £36 million, up 2.9% on the fourth quarter of 2024.
Later life borrowing accounted for a notable share of overall mortgage activity. Residential later life loans made up 8.02% of all residential advances in the quarter, while later life buy-to-let loans represented 21.4% of total buy-to-let lending.
“The rise in later life lending announced by UK Finance reflects the growing importance of this sector within the wider mortgage market,” said Richard Pike, chief sales and marketing officer at financial services software provider Phoebus.
“Today’s figures show that later life lending accounted for 8% of all residential mortgage lending in Q4 2025. With people living longer and facing more complex financial needs in later life, these products provide a crucial solution for those looking to unlock property wealth. This is no longer a niche area, and the Financial Conduct Authority has set out plans for a focused later life lending market study.
“While some mainstream lenders are starting to offer later life products, the sector’s growth is being led by specialist lenders, and we’re hearing from our account servicing clients that they expect the market to continue to grow in 2026.”
Simon Webb (pictured right), managing director of capital markets and finance at LiveMore, meanwhile, welcomed the growing momentum across other non-equity release later life lending products.
“This signals a broader shift in awareness, with the market increasingly recognising the full spectrum of options available to older borrowers,” he said.
“The over-50s market represents a significant growth opportunity for brokers, particularly as alternatives to equity release gain traction. And, while many older clients may have more complex finances, identifying the right solution is no longer the challenge it once was. With the appropriate sourcing platforms and clearly defined criteria, brokers can efficiently navigate affordability and product suitability.”
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