There were 28,840 new loans advanced to older borrowers in Q1, down 11.7% year on year. The value of this lending was £4.3bn, which was down 8.5% compared with the same quarter a year previously.

This is according to the latest figures from UK Finance which also reveals that there were 5,060 new lifetime mortgages advanced in Q1, down 30.1% year on year. The value of this lending was £410m, which was down 31.7% compared with the same quarter a year previously.

There were 284 retirement interest only mortgages advanced in Q1, up 1.4% year on year. The value of this lending was £28mn, which was up 16.7% compared with the same quarter a year previously.

Residential Later Life loans in Q1 represent 7.9 per cent of all residential loans. BTL Later Life loans in Q1 represent 22.5 per cent of all BTL loans.

LiveMore  managing director of capital markets Simon Webb commented: “The latest figures paint a concerning picture. 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.”