UK Finance data shows the value of this lending was £5.6bn, which was up 38.6% compared with the same quarter a year previously.

There were 5,700 new lifetime mortgages advanced in the last quarter of the year, up 6.7% year on year.

The value of this lending was £510m, a rise of 24.4% compared with the same quarter a year previously.

There were 343 retirement interest only mortgages advanced in Q4, up 35.6% year on year.

The value of this lending was £35m, which was up 34.6% compared with the same quarter a year previously.

Residential later life loans in Q4 represent 7.8% of all residential loans while buy-to-let (BTL) later life loans in Q4 represent 21.8% of all BTL loans.

Equity Release Council chief executive officer Jim Boyd says: “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 be 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.”

“Interest rates have started to fall and even with higher than targeted inflation, the recent decision in February should start to build consumer confidence.”

“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.”

LiveMore managing director of capital markets and finance Simon Webb comments: “It’s encouraging to see later life lending on the rise, reflecting both growing borrower demand and increased awareness of the role later life lending can play in financial planning.”

“As a lender dedicated to serving the over-50s, we’re also seeing strong growth, with more homeowners looking for flexible mortgage options that align with longer working lives and evolving retirement needs.”

“The market must continue to adapt to ensure older borrowers have access to the right products, enabling them to make the most of their financial future.”

Phoebus chief sales and marketing officer Richard Pike adds: “The rise in later life lending announced by UK Finance this morning reflects the feedback we’re getting from our account servicing clients and is a clear indication of both increasing borrower demand and the growing importance of this sector within the wider mortgage market.”

“With people living longer and facing more complex financial needs in later life, these products provide a crucial solution for those looking to unlock property wealth.”

“Today’s increase is a positive sign for the broader lending market, demonstrating growing consumer confidence and resilience in the lending market, as providers continue to innovate to meet the needs of older homeowners while ensuring responsible lending remains a priority.”