Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Later Life Lending Drops 4.8% Year-on-Year, Reports UK Finance

UK Finance has reported a 4.8% year-on-year decrease in new loans advanced to older borrowers in the first quarter of the year, with 36,050 loans issued. The total value of these loans reached £6.0 billion, a slight increase of 0.3% compared to the same period last year.

The latest figures also show a decline in new lifetime mortgages, with 5,300 advanced in Q1—down 8% from the previous year and 7.2% lower than the previous quarter. The value of lifetime mortgage lending stood at £490 million.

In contrast, the number of retirement interest-only mortgages advanced in Q1 rose by 5.4% year-on-year, totalling 353 loans. The value of this lending remained unchanged at £33 million compared to the same quarter last year.

Residential later life loans accounted for 8.2% of all residential loans in Q1, while buy-to-let (BTL) later life loans represented 20.1% of all BTL loans during the same period.

These trends in later life lending may be relevant for UK letting agents and inventory clerks, as shifts in mortgage activity among older borrowers can influence property availability and tenant demographics.