Statistics published by UK Finance show “momentum building” in the non-equity release later life lending market, indicating greater awareness and availability for borrowers over the age of 55.
There was an increase of 15% in the number of new loans (41,100) advanced to older borrowers (over 55s) in the final quarter of 2025. The value of that lending was also up 20.5% year on year, at £6.8 billion.
Describing the numbers as “encouraging” Simon Webb, managing director of capital markets and finance at LiveMore, said:
“The over-50s market represents a significant growth opportunity for brokers, particularly as alternatives to equity release gain traction. Brokers do not require additional qualifications and permissions to advise on products such as Retirement Interest-Only (RIO) and Term Interest-Only (TIO) mortgages. And, while many older clients may have more complex finances, identifying the right solution is no longer the challenge it once was.”
There were 5,700 new lifetime mortgages advanced in Q4, unchanged from the same quarter a year earlier and down 5.6% compared to Q3. The total value of the lending was £510 million. The number of retirement interest only mortgages (388) increased 13% in Q4 2025 compared to the same period in 2024, with a value of £36m.
A small but steady increase in later life lending has seen the proportion of mortgages taken on by over 55s across the whole lending market increase from just over 5% in 2022, to 8% by 2025.
Commenting on the figures Mary-Lou Press, president of NAEA Propertymark (National Association of Estate Agents), said:
“It is encouraging to see that there are ever-increasing financial options for borrowers over the age of 55. However, the figures do also highlight that many people are potentially struggling to follow their homebuying ambitions much earlier in life.
“Ongoing cost-of-living pressures continue to impact daily life for many and sometimes hinder hard-fought ambitions to save necessary deposits, while many people are also saving for retirement.
“We sit in a better position regarding inflation and base rates than we did this time last year, and if any interest rate cut happens next month, when the Bank of England Monetary Policy Committee next meets, then this could represent yet another positive step towards helping ease ongoing financial pressures and thus allow additional flexibility to purchase a property.”
