Rise in older borrower numbers

'Tough decisions' for households as figures show increase in later life mortgages

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Concerns that some homeowners are making “tough decisions” have been raised after it emerged that £5.2 billion of later life mortgages were handed out to over-55s in the second quarter of this year.

The figure, released by UK Finance, marks a 3% increase compared with the same period a year earlier.

Its later life lending trends data covers “mainstream” lending to older borrowers, as well as specialist products.

UK Finance said 33,130 new loans were advanced to older borrowers in the second quarter of this year, up by 0.49% annually.

Mary-Lou Press, president of NAEA (National Association of Estate Agents) Propertymark, said: “While it is positive lenders are confident to better serve this age group than ever before, it can also be the case that tough decisions are being made by people who are finding affordability a challenge earlier in life and considering taking finance over longer periods than any point previously.”