UK Finance’s later life mortgage lending update for Q2 2024 reveals that there were 5,610 new lifetime mortgages advanced in Q2, down 16.9% year on year.

The value of this lending was £470m, down 6% compared with the same quarter a year previously.

The data also shows there were 326 retirement interest-only mortgages advanced in Q2, up 23% year on year. The value of this lending was £30m, which was up 15.4% compared with the same quarter a year previously.

Residential Later Life loans in Q2 represent 7.5% of all residential loans. BTL Later Life loans in Q2 represent 22.2% of all BTL loans.

Richard Pike, chief sales and marketing officer at Phoebus, says in response to the UK Finance stats: “While figures for Q2 2024 initially look a bit disappointing, with new loans down by 8.34% year on year and new lifetime mortgages down 16.9% year on year, they are in fact an improvement on last quarter’s figures.

“Last quarter there were only 28,840 new loans advanced to older borrowers compared to 32,990 this quarter. Similarly for new lifetime mortgages, those figures are up from 5,060 last quarter to 5,610 in Q2.

“We’re seeing strong foundations for continuing growth in later life lending, which will be further helped with lower interest rates and better deals. I think we’ll see more and more innovation in this sector as lenders work hard to gain market share.”