Propertymark has responded to UK Finance’s later life mortgage lending update for Q4 2024, focusing on the growing trend of older borrowers taking out mortgages despite the challenging economic climate.
The report revealed a significant rise in lending to borrowers over the age of 55, with 35,840 new loans advanced in Q4 – a 28.2% increase compared to the same period in 2023.
The value of these loans reached £5.6bn, up by 38.6% year on year. Lifetime mortgages also saw growth, with 5,700 new loans advanced, marking a 6.7% rise, while retirement interest-only mortgages surged by 35.6%, totaling 343 new loans.
Toby Leek, President of NAEA Propertymark, highlights that the rise in later life lending reflects a surprising level of confidence among older borrowers, even as interest rates remain high.
FINANCIAL PRESSURES
He says: “Even with interest rates at relatively high levels, this report demonstrates that older people still feel confident enough to borrow money to finance their future home purchases.
“This trend is being reflected across all buyers, with the Bank of England’s Money and Credit Report for December 2024 finding that net mortgage approvals increased to 66,500 in December.”
Leek also points to the financial pressures facing many borrowers, emphasising that for some, borrowing later in life is not always a matter of choice but of necessity.
He adds: “With the economic landscape remaining reasonably unsettled, many people’s finances may be stretched, meaning they need to borrow for longer, not out of choice but out of need.
“Much of the country will now be eagerly awaiting interest rates to track downward so that mortgages can continue to become more affordable, allowing others the chance to make their next home moves a reality.”
GROWING DEMAND
Simon Webb, managing director of capital markets and finance at LiveMore, says: “It’s encouraging to see later life lending on the rise, reflecting both growing borrower demand and increased awareness of the role later life lending can play in financial planning.
“As a lender dedicated to serving the over-50s, we’re also seeing strong growth, with more homeowners looking for flexible mortgage options that align with longer working lives and evolving retirement needs.
“The market must continue to adapt to ensure older borrowers have access to the right products, enabling them to make the most of their financial future.
“At LiveMore, we take our responsibility to this group seriously – the LiveMore Mortgage Matcher® helps brokers identify suitable solutions for borrowers in a multitude of different circumstances, enabling brokers to provide financial stability and peace of mind for borrowers.”
