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

Later Life Mortgage Lending Sees Significant Growth in Q2 2026

Later life mortgage lending increased in the second quarter of 2026, with both the number and value of new loans to older borrowers rising sharply year-on-year, according to UK Finance. The latest data shows that 37,300 new loans were advanced to older borrowers during Q2, up 13.4% compared with the same period last year, with the value of lending rising 20.5% to £6.2 billion.

Lifetime mortgage activity was more subdued, with 5,730 new lifetime mortgages advanced during the quarter. This figure is 1.7% lower than in Q2 2025 but 8% higher than in the first quarter of 2026. The total value of lifetime mortgage lending reached £490 million.

Retirement interest-only (RIO) mortgage volumes also saw growth, with 323 new loans completed in Q2 2026, representing a 5.9% increase year-on-year. The value of RIO lending rose 24% to £31 million.

Later life borrowing continues to account for a notable share of the wider mortgage market. Residential later life loans represented 7.8% of all residential loans advanced during Q2 2026. In the buy-to-let sector, later life borrowing accounted for 20.6% of all new buy-to-let loans.

For UK letting agents and inventory clerks, these trends highlight the growing importance of later life lending products in both the residential and buy-to-let markets. The data suggests that older borrowers are increasingly active, which may influence tenancy patterns and property management considerations.