There were 36,050 new loans advanced to older borrowers in Q1, down 4.8% year on year, UK Finance reveals.

The latest figures show that the value of this lending was £6.0bn, which was up 0.3% compared with the same quarter a year previously.

There were 5,300 new lifetime mortgages advanced in Q1, down 8% from the same quarter a year earlier and down 7.2% compared to Q4. The value of this lending was £490 million. 

It also shows that there were 353 retirement interest only mortgages advanced in Q1, up 5.4% year on year.

The value of this lending was £33 million, unchanged from the same quarter a year previously.

Residential later life loans in Q1 represent 8.2% of all residential loans, while BTL later life loans in Q1 represent 20.1% of all BTL loans.

Commenting on the figures, Equity Release Council chief executive Jim Boyd says: “Retirement is increasingly becoming a balancing act between pensions, savings and property wealth, and today’s figures reflect that shift.”

“The fall in lifetime mortgage activity mirrors the more cautious mood across the wider mortgage market, with economic uncertainty and pricing pressures continuing to slow decision making. However, demand clearly has not disappeared.”

“The Pensions Commission has recently reported that 15 million people are currently not saving adequately for retirement. As pension pressures continue to build, housing wealth will play a growing role in helping drive financial resilience in later life.”

“Modern later life lending products have transformed significantly in recent years, with greater flexibility and stronger consumer protections helping accelerate confidence across the market.”