The value of this lending was £5.6bn, up 38.6% compared with the same quarter a year previously. It includes standard mortgages to older borrowers as well as equity release lending.
Equity release lending up
Of the mortgages lent to older borrowers, 5,700 were new lifetime mortgages, up 6.7% year on year. The value of lifetime mortgage lending was £510mn, up 24.4% compared with the same quarter a year previously.
There were 343 retirement interest-only mortgages advanced in the same period, up 35.6% year on year. The value of this lending was £35mn, up 34.6%% compared with the same quarter a year previously.
UK Finance added that residential later life loans in Q4 represent 7.8% of all residential loans. Buy-to-let later life loans represent 21.8% of all buy-to-let loans.
Jim Boyd, CEO of the Equity Release Council, said: “We are delighted that the UK Finance figures echoes our own in that we have seen steady growth in lending figures with Q4 performing significantly better than the same time last year. This is a testament to the resilience of the market and its ability to adapt to shifting economic conditions.
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“While volumes were not as buoyant as some might have hoped in 2024, the work that was undertaken on product development, systems and engagement will provide invaluable as we move into 2025. The market has started to turn a corner and there is real cause for optimism as to what can be achieved this year.
“If the growth seen in 2024 gains momentum, we anticipate that we will see more customers comfortable with considering accessing their housing equity to support a diverse range of different needs.”
Toby Leek, NAEA Propertymark president, added: “Even with interest rates at relatively high levels, this report demonstrates that older people still feel confident enough to borrow money to finance their future home purchases. However, with the economic landscape remaining reasonably unsettled, many people’s finances may be stretched meaning they need to borrow for longer, not out of choice but out of need.
“Much of the country will now be eagerly awaiting interest rates to track downward so that mortgages can continue to become more affordable allowing others the chance to make their next home moves a reality.”
