The number of mortgages taken out by borrowers over the age of 55 totalled 35,840 in Q4 2024, up 28.2% year-on-year, according to the latest figures from UK Finance.
The value of this lending was £5.6bn, which was up 38.6% compared with the same quarter a year previously.
There were 5,700 new lifetime mortgages advanced in Q4, up 6.7% annually, with the value of lending rising by 24.4% to £510m.
Retirement interest-only lending rose by 35.6%, with 343 loans totalling £35m, which was up 34.6% compared with the same quarter a year previously.
Residential later life loans in Q4 represent 7.8% of all residential loans, while buy-to-let later life loans represented 21.8% of all BTL loans.
Richard Pike, chief sales and marketing officer at Phoebus, commented: "The rise in later life lending announced by UK Finance this morning reflects the feedback we’re getting from our account servicing clients and is a clear indication of both increasing borrower demand and the growing importance of this sector within the wider mortgage market. With people living longer and facing more complex financial needs in later life, these products provide a crucial solution for those looking to unlock property wealth.
"Today's increase is a positive sign for the broader lending market, demonstrating growing consumer confidence and resilience in the lending market, as providers continue to innovate to meet the needs of older homeowners while ensuring responsible lending remains a priority."
Simon Webb, managing director of capital markets and finance at LiveMore, added: “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."
