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.

Lifetime Mortgage Lending Drops in Q1 as RIO Sales Increase

New data from UK Finance shows a 4.8% fall in new loans advanced to borrowers aged 55 and over in the first quarter of 2026, totalling 36,050 loans valued at £6 billion. While the overall value of lending was 0.3% higher than the same period last year, the number of new lifetime mortgages dropped by 8% year-on-year to 5,300, with a value of £490 million.

The report also highlights that retirement interest-only (RIO) mortgage lending remained steady in value at £33 million, but the number of RIO loans increased by 5.4% to 353 in Q1. For buy-to-let (BTL) loans to older borrowers, 11,700 loans were advanced, a 2.9% decrease compared to the previous year, though the value of this lending rose by 4.7% to £2.2 billion.

Most later life borrowers in Q1 were in the 55-60 age group, accounting for 17,100 people, despite a 6.8% decline in numbers. The next largest group was those aged 60-65, with 9,300 borrowers, a 4.2% drop from the previous year. Borrowers aged 65-70 and over 70 took out a similar number of later life mortgages, with 4,700 and 4,660 customers respectively.

Residential later life loans made up 8.2% of all residential loans in Q1, while BTL later life lending represented 20.1% of the wider BTL market.

These trends may be relevant for letting agents and inventory clerks monitoring the activity of older landlords and property owners, as shifts in later life lending could impact property turnover and rental market dynamics.