UK Finance revealed there were 36,050 new loans made to older borrowers in the first quarter, down 4.8% year-on-year.
The latest figures show the value of this lending reached £6.0 billion, an increase of 0.3% compared to the same quarter the previous year.
There were 5,300 new lifetime mortgages advanced in the first quarter, down 8% from the same quarter a year earlier and down 7.2% compared to the fourth quarter. The value of this lending amounted to 490 million pounds sterling.
It also shows that there were just 353 retirement benefits from mortgages provided in the first quarter, up 5.4% year-on-year.
The value of this lending amounted to £33 million, unchanged from the same quarter of the previous year.
After-life residential loans in Q1 represent 8.2% of all residential loans, while BTL after-life loans in Q1 represent 20.1% of all BTL loans.
Commenting on the figures, Jim Boyd, chief executive of the Equity Council, says: “Retirement is increasingly a balancing act between pensions, savings and real estate wealth, and today’s figures reflect this shift.”
“The decline in lifetime mortgage activity reflects the more cautious mood in the broader mortgage market, with economic uncertainty and pricing pressures continuing to slow decision-making. However, it is clear that demand has not disappeared.”
“The Pensions Commission recently reported that 15 million people are not currently saving enough for retirement. As pension pressures continue, housing wealth will play an increasing role in helping to boost financial resilience later in life.”
“Modern lifetime lending products have undergone a significant transformation in recent years, with greater flexibility and stronger consumer protections helping to accelerate confidence across the market.”
