Later life lending surges as over-55s turn to property wealth

UK’s older borrowers take out over £6bn in loans in just three months

Written in line with our editorial policy.

A growing number of older homeowners in the UK are turning to later life lending solutions to help manage their finances, according to new figures released by UK Finance. 

The data for the first quarter of 2025 reveals a sharp increase in the use of products aimed at over 55s. Specifically, lifetime mortgages, retirement interest-only (RIO) loans, and other later life borrowing options. 

Between January and March 2025, a total of 38,510 new loans were advanced to people aged 55 and over. That marks a 33.5% increase compared to the same period last year. 

The total value of these loans reached a substantial £6.1 billion, up 42.6% year-on-year.

This surge highlights the increasing importance of property wealth as a financial lifeline for older households. When navigating a complex economic landscape marked in recent years by rising living costs and higher interest rates, many are looking for flexible retirement funding solutions.

Equity release and RIOs

A closer look at the figures shows growth across a range of later life lending products.

• Lifetime mortgages. January-March 2025 saw 5,620 new lifetime mortgages taken out. That was a 11.1% rise on the same period in the previous year. The total value of these loans reached £530 million, up 39.5%.
• Retirement interest-only (RIO) mortgages. These also saw increased activity, with 339 new RIOs issued, a 19.4% rise year-on-year, totalling £33 million in lending.

These figures show that later life lending is now a significant part of the mortgage landscape.

Why is demand for later life lending growing?

Simon Webb of later life lender LiveMore commented on the fact that the growth in later life lending reflects the financial needs and goals of people in their fifties and older. He said: “Whether it’s helping children onto the property ladder, funding lifestyle changes, or managing existing debt, older borrowers are increasingly seeking flexible, tailored solutions.” 

Richard Pike of mortgage servicing provider Phoebus, said: “An increase in later life lending activity signals that older borrowers are continuing to take a more proactive approach to managing their finances — whether that’s through traditional mortgages, RIOs, or equity release products.”

The role of advice and education

Jim Boyd, CEO of the Equity Release Council, welcomed the growth but pointed to untapped potential: “The market is moving swiftly from niche to mainstream with increasing numbers of older customers relying on advisers to help them navigate their various options.

“However, while the rise in equity release borrowing echoes the Council’s own Q1 figures, there is certainly scope for more growth as half (51%) of UK households are expected to need to use housing wealth to support their spending needs in retirement.  

“The recently released Fairer Finance report suggested that if we overcome some of the barriers facing the later life lending market, we might see £21 billion injected into our economy each year from 2040, in today’s prices.”

Explore your later life lending options

As the population ages and retirement finances come under increasing strain, the importance of later life lending looks set to grow. If you are one of the thousands of people who wish to look at ways to turn your property equity into cash, help is at hand.

If you are interested in equity release or retirement interest-only mortgages, please get in touch today for information, advice and personalised, no-obligation quotes.

Just call us on 0800 096 2215 or request a call back and we’ll arrange an appointment with one of our selected advisers for you. 

About Richard Groom. A writer with 20+ years’ experience across several sectors including financial services, Richard has a passion for writing clear and simple content on even the most complex of subjects. In his spare time, Richard loves exploring the hills and mountains of the UK on long walks with his faithful cocker spaniel. Follow Richard on LinkedIn