A total of 38,510 new loans were advanced to older borrowers in Q1, up 33.5% YoY, UK Finance’s latest later life mortgage lending update for Q1 2025 has revealed.

The value of this lending was £6.1bn, which was up 42.6% annually.

There were 5,620 new lifetime mortgages advanced in Q1, up 11.1% year-on-year, totalling £530m, up 39.5% compared with Q1 2024.

UK Finance also revealed there were 339 retirement interest-only mortgages advanced, up 19.4% year on year, with a total value of £33m, up 17.9%.

Residential later life loans in Q1 represented 7.6% of all residential loans, while buy-to-let later life loans represented 21.5% of all buy-to-let loans.

Richard Pike, chief sales and marketing officer at Phoebus, commented: “An increase in later life lending activity signals that older borrowers are continuing to take a more proactive approach to managing their finances — whether that’s through traditional mortgages, RIOs, or equity release products. In an environment where cost of living remains high, tapping into property wealth or restructuring existing borrowing is becoming an increasingly important part of later life planning.

“What’s notable is the continued diversification within this market. We’re seeing borrowers opt for a range of solutions depending on their needs — from managing interest-only mortgage maturities to helping family members onto the property ladder. As the market matures, technology, underwriting flexibility and adviser support will all be key to ensuring that later life lending continues to evolve in a responsible, sustainable way.”

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