A total 32,290 new loans were advanced to older borrowers in the second quarter, a figure down 8.34% compared to last year, new UK Finance data has revealed.

The value of this lending reached £5bn, which was down 17.5% compared with the same quarter a year previously.

According to the banking trade body’s later life mortgage lending figures, there were 5,610 new lifetime mortgages advanced in Q2, which was down 16.9% year-on-year. The value of this lending totalled £470m, which was down 6% compared with the same quarter a year ago.

The figures also showed there were 326 retirement interest-only mortgages advanced in Q2, up 23% on last year, while the value of this lending reached £30m, which was up 15.4% on last year’s Q2.

“While today’s figures for Q2 2024 initially look a bit disappointing, with new loans down by 8.34% year-on-year and new lifetime mortgages down 16.9% year-on-year, they are in fact an improvement on last quarter’s figures,” commented chief sales and marketing officer at Phoebus, Richard Pike.

“Last quarter, there were only 28,840 new loans advanced to older borrowers compared to 32,990 this quarter. Similarly for new lifetime mortgages, those figures are up from 5,060 last quarter to 5,610 in Q2.”

UK Finance also revealed that residential later life loans represented 7.5% of all residential loans advanced during Q2, while in the buy-to-let (BTL) market, later life loans represented 22.2% of all BTL loans.

Pike added: “We’re seeing strong foundations for continuing growth in later life lending, which will be further helped with lower interest rates and better deals. I think we’ll see more and more innovation in this sector as lenders work hard to gain market share.”

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