Thursday 28 Nov 2024, 10:07
UK Finance later life mortgage lending update Q3 2024
Today, UK Finance has published its later life mortgage lending update for Q3 2024. The report provides a quarterly insight into mortgages taken out by borrowers over the age of 55, the trends in lending, and demographics of those accessing the market. These trends cover mainstream lending to older borrowers, as well as specialist products such as lifetime mortgages.
Key data highlights:
- There were 33,840 new loans advanced to older borrowers in Q3, up 2 per cent year on year. The value of this lending was £5.2bn, which was up 9.7 per cent compared with the same quarter a year previously.
- There were 5,830 new lifetime mortgages advanced in Q3, down 18.8 per cent year on year. The value of this lending was £510mn, which was down 8.9 per cent compared with the same quarter a year previously.
- There were 306 retirement interest only mortgages advanced in Q3, up 0.3 per cent year on year. The value of this lending was £28mn, which was up 10.7 per cent per cent compared with the same quarter a year previously.
- Residential Later Life loans in Q3 represent 7.7 per cent of all residential loans. BTL Later Life loans in Q3 represent 21.7 per cent of all BTL loans.
Contact Information
UK Finance Press Office
020 7416 6750
press@ukfinance.org.uk
Notes to editors
- A RIO (Retirement Interest Only) mortgage is an Interest Only mortgage that allows borrowers to pay just the monthly amounts of interest throughout the term until either the death of the last remaining borrower or when the last remaining borrower moves into long-term care. When one of these events occurs the mortgage ends and the amount outstanding must be repaid in full.
- Lifetime Mortgages - The key difference with this product compared to a standard mortgage or a RIO is that monthly payments are not required. The mortgage is repayable upon death of the last remaining borrower or when the last remaining borrower moves into long term care. Where no monthly payments are made, the interest accrues over the lifetime of the mortgage, meaning the amount borrowers owe at the end of the mortgage will be more than the amount they borrowed. However, many lenders will allow borrowers to make full or partial interest payments either on a monthly or ad-hoc basis.
- The term older borrowers is defined as the main borrowers being above 55 years old.
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