UK Finance Later Life Mortgage Data Sparks Concern Among Brokers
UK Finance has released its later life mortgage lending data for Q1 2024, revealing a decline in new loans advanced to older borrowers. According to the findings, there were 28,840 new loans advanced in Q1, down 11.7% year-on-year. The value of this lending was £4.3bn, down 8.5% compared with the same quarter a year previously.
Later life mortgage lending continues to decline
The data also showed a significant decline in new lifetime mortgages, with 5,060 new loans advanced in Q1, down 30.1% year on year. The value of this lending was £410m, down 31.7% compared with the same quarter a year previously.
However, retirement interest-only mortgages saw a slight increase, with 284 new loans advanced in Q1, up 1.4%. The value of this lending was £28m, up 16.7% compared with the same quarter a year previously.
Brokers have expressed concern over the data, citing a mismatch between the figures and the demand they are seeing on the ground. Ben Perks, managing director at Orchard Financial Advisers, stated, “Demand for Golden Ager mortgages is going through the roof at present. As a result, this data seems at odds with what’s happening on the ground.”
Mortgage brokers express concern over UK Finance data
Simon Bridgland, broker and director at Release Freedom, also commented, “Demand for later life mortgages has continued to surge, primarily for needs-based reasons such as clearing an existing mortgage and other debts, so this data made me double take.”
The decline in later life mortgage lending has sparked concerns among brokers, who are seeing increased demand for these products. The data highlights the need for lenders to adapt to changing market conditions and consumer needs.
Later life lending continues to evolve
As the later life mortgage market continues to evolve, it is essential for lenders to stay ahead of the curve and provide products that meet the needs of older borrowers. The UK Finance data serves as a reminder of the importance of innovation and adaptability in the mortgage industry.
