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

Later Life Lending Increases in Q2, But Uptake Lags Behind Need

UK Finance has reported a rise in later life lending during the second quarter of 2026, with 37,300 new loans advanced to older homeowners. The value of these loans reached £6.2 billion, an increase compared to the same period in 2025.

The figures show that while later life lending is growing, there remains a notable gap between the number of older borrowers who could benefit from these products and those actually taking them up. UK Finance noted that the year-on-year comparison was affected by a drop in lending in Q2 2025 following stamp duty changes introduced in April that year.

In Q2 2026, 5,730 new lifetime mortgages were advanced, which is a 1.7% decrease compared to the same quarter a year earlier, but an 8% increase from Q1. The value of lifetime mortgage lending stood at £490 million. For retirement interest-only (RIO) mortgages, 323 were advanced in the quarter, up 5.9% year-on-year, with a total value of £31 million, representing a 24% increase on Q2 2025.

Residential later life loans accounted for 7.8% of all residential loans, while buy-to-let (BTL) later life loans made up 20.6% of all BTL loans.

Industry figures highlighted the need for greater awareness and guidance around later life lending options. The data suggests that, despite the increase in lending, many older homeowners may not be fully exploring or accessing the range of financial products available to them in later life.

For letting agents and inventory clerks, these trends may signal ongoing changes in the property market, particularly as older homeowners consider different ways to access capital or manage their property assets in retirement.