UK pensioners borrow £6.1bn on their homes

MORE pensioners are borrowing against the value of their homes to make ends meet in retirement, but experts warn this could store up trouble for the future.

- By Harvey Jones

New figures reveal a surge in later life mortgage lending, as over-55s unlock cash from their homes to cover rising living costs, patchy pensions and those unexpected bills.

A total of 38,510 new equity release loans were advanced to older borrowers in the first three months of 2025, up a third on a year ago.

In total, homeowners borrowed £6.1billion, an increase of almost 43% on the same period last year, new figures published by UK Finance show.

One of the fastest-growing products available is the lifetime mortgage, where interest rolls up unpaid until the borrower dies or sells the property.

The capital borrowed and accumulated interest is cleared from the process of the property sale, with the surplus going to family in the usual way.