UK Finance has released its latest data on the later life mortgage showing that lending increased by 15.1% in Quarter 4 (Q4).

The data showed that 41,400 new loans advanced to borrowers over 55 in Q4 2025.

£810 million pounds of lending was to leant borrowers aged 65 to 70, up a huge 26.56%. A further 650 million pounds of lending went to those aged over 70 – an increase of 6.56%.

The value of this lending was £6.8 billion, which was up 20.5 per cent compared with the same quarter a year previously. There were 5,700 new lifetime mortgages advanced in Q4, unchanged from the same quarter a year earlier and down 5.6 per cent compared to Q3. The value of this lending was £510 million

Simon Webb, Managing Director of capital markets and finance at LiveMore, said  “It’s encouraging to see momentum building 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.

“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. With the appropriate sourcing platforms and clearly defined criteria, brokers can efficiently navigate affordability and product suitability.”

Clare Stinton, Financial Wellbeing Lead at Hargreaves Lansdown said “Retirement was meant to be the light at the end of the tunnel. Instead, for a growing number of over-55s, it’s coming with a mortgage attached. New data from UK Finance show that 1,620 mortgages were taken out by retirees between October and December last year – this is up more than 25% year on year. Borrowing in later life is becoming part of the mainstream retirement picture, but this shift comes with real consequences.

"Once the pay cheques stop, retirees are typically relying on a finite pot of cash to last the rest of their lives – covering everything from essential costs, to hobbies, holidays and dinners out with loved ones. Adding a mortgage to the bill – particularly at today’s higher interest rates – can add significant strain to a budget that may already be stretched by rising living costs.

“Lending to borrowers over 70 continues to climb – £650 million was advanced in the final three months of 2025, up 6.56% on the same period a year earlier. At the same time, new health data suggest we can only expect to spend around 60 years in good general health, taking many of us into our early 60s. The likelihood of ill-health increases just as the retirement phase of life begins. For those borrowing later in life this raises difficult questions. If ill-health struck, could your savings maintain the mortgage payments and any costs required for care, or amendments to the home?”

Source: Credit Connect