UK Finance - Later Life Lending Update Q2 2026

Key information: 

• There were 37,300 new loans advanced to older borrowers in Q2, up 13.4 per cent year on year. The value of this lending was £6.2 billion, which was up 20.5 per cent compared with the same quarter a year previously. However, the year-on-year comparison is inflated due to the dip in lending in Q2 2025. This follows the rush to beat stamp duty changes from April 2025 onwards.  

• There were 5,730 new lifetime mortgages advanced in Q2, down 1.7 per cent from the same quarter a year earlier and up eight per cent compared to Q1. The value of this lending was £490 million.  

• There were 323 retirement interest only mortgages advanced in Q2, up 5.9 per cent year on year. The value of this lending was £31 million, up 24 per cent from the same quarter a year previously.  

• Residential Later Life loans in Q2 represented 7.8 per cent of all residential loans. BTL Later Life loans in Q2 represented 20.6 per cent of all BTL loans. 

James Tatch, Head of Analytics at UK Finance, said: 

“Later life lending rose in the second quarter, with both the number and value of loans to older borrowers increasing compared with a year earlier, although the annual comparison reflects the temporary dip in activity following last year’s stamp duty changes.  

“Lifetime mortgage lending also recovered from the first quarter, while retirement interest-only mortgages recorded further year-on-year growth. The figures underline the important role later life lending plays across the wider mortgage market, particularly in buy-to-let. Customers considering their options should seek advice to identify the product best suited to their individual circumstances.” 

The full dataset is attached.