Later life lending figures from UK Finance show a 13.4% annual increase in the number of new loans advanced to borrowers aged 55 or over in Q2 2026.
The Later Life Lending Update Q2 2026 reveals 37,300 new loans were advanced to older borrowers in Q2, suggesting increasing numbers of people are recognising the role property wealth can play in funding their financial goals, rather than being treated as a last resort.
The total value of later life lending in Q2 2026 was £6.2 billion, up 20.5% compared with the same quarter a year previously. The 5,730 new lifetime mortgages advanced in Q2, with a value of £490 million, represented a fall of 1.7% against the same quarter a year earlier but an 8% increase compared to Q1.
Retirement interest-only mortgages advanced in Q2 have a value of £31 million and are up 5.9% year-on-year, to a total of 323. Residential later life loans represented 7.8% of all residential loans, while buy-to-let (BTL) later life loans accounted for 20.6% of all BTL loans.
Levi Culshaw, later life proposition manager at Mortgage Advice Bureau, said an increasing number of customers are approaching later life lending with a clear purpose in mind, “whether that’s boosting retirement income, supporting their family, or even ticking off that once-in-a-lifetime trip”.
He added: This shift in mindset, alongside greater product flexibility and competitive rates, is likely behind the renewed momentum we’re seeing in the data.
“That said, growth in the market doesn’t mean the myths have gone away. Many people still rule out later life lending because they wrongly believe it means losing their home, leaving family with debt, or having no inheritance to pass on. The reality is far more flexible than that outdated reputation suggests, and speaking to a specialist adviser is the best way to understand what’s genuinely possible for your individual circumstances.”
NAEA Propertymark president Ian Harris said: “It is encouraging to see the mortgage market evolving to offer greater choice and flexibility, particularly for those aged 50 and over. However, there are wider considerations, with cost-of-living pressures and historic challenges around saving for deposits potentially influencing later life borrowing decisions.
“Rising household costs, including energy prices, alongside higher interest rates and inflation, continue to put pressure on affordability and may also be shaping changing consumer habits as we progress forward.”
