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 Rises Over 20% in Q2, Reports UK Finance

Lending to borrowers aged 55 and over surged by more than 20% year on year to £6.2bn in the second quarter of 2023, according to UK Finance. The industry body reported 37,300 new loans advanced to older borrowers in Q2, up by 13.4% compared to the same period last year.

UK Finance noted that the percentage increase is partly due to a lower base in Q2 2022, when lending fell after a rush to beat the stamp duty deadline in April of that year. The value of lending to older borrowers reached £6.2bn, representing a 20.5% rise year on year.

The figures also show that 5,730 new lifetime mortgages worth a total of £490m were advanced in Q2. While the number of lifetime mortgage loans was 1.7% lower year on year, it was 8% higher than in the previous quarter. Additionally, 323 retirement interest-only mortgages were advanced in Q2, up 5.9% year on year and worth a total of £31m, which is 24% more than the same quarter in 2022.

These trends in later life lending may be relevant for UK letting agents and inventory clerks, as they reflect changing financial strategies among older homeowners and could influence property transactions and tenancies involving this demographic.