"Latest figures paint a concerning picture"
Mortgage lending to older borrowers declined in the first quarter of 2024, UK Finance has reported.
According to its latest quarterly insight into mortgage lending to borrowers over the age of 55, a total of 28,840 new loans were advanced, an 11.7% drop year on year. The value of these loans amounted to £4.3 billion, down 8.5% from the same period last year.
Lifetime mortgages saw a significant decrease, with 5,060 new loans issued, a 30.1% reduction compared to the previous year. The value of lifetime mortgage lending fell to £410 million, a 31.7% annual decline.
By contrast, retirement interest-only mortgages experienced a slight increase, with 284 new loans advanced in Q1, up 1.4% from the same period last year. The value of this lending grew by 16.7% to £28 million.
Residential later life loans in the first quarter represented 7.9% of all residential loans, while buy-to-let later life loans accounted for 22.5% of all buy-to-let loans.
“The latest figures paint a concerning picture,” said Simon Webb (pictured), managing director of capital markets and finance at later life lender LiveMore. “There was a decrease of 11.7% in loans to older borrowers in Q1 2024 compared to the same quarter in 2023. This continues the downward trend we witnessed in the latter half of 2023.
“This decline, despite an ageing population, is particularly worrying when we consider the potential rise in mortgage prisoners. Interest-only products can be a lifeline for these individuals, yet many remain unaware of their eligibility and options.
“If there was ever a time for action in raising awareness among older borrowers, it’s now. We’re doing all we can to support customers and ensure they can access suitable financial products to stay in their homes.”
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