Jon Hall, Group Chief Commercial Officer, OSB Group
One of the biggest misconceptions in later life lending is that borrowers over 55 share the same priorities.
In reality, later life borrowers are far from a uniform group. Although age may be a common factor, their circumstances, priorities and long-term objectives can vary significantly.
The latest UK Finance figures offer further evidence of that. Alongside 37,300 later life loans advanced during Q2, the market saw activity across a range of products, including 5,730 new lifetime mortgages and 323 retirement interest-only mortgages.
While those figures are encouraging, they should be viewed in context. UK Finance notes that the year-on-year comparison is influenced by the dip in lending seen in Q2 2025 following the rush to complete transactions ahead of stamp duty changes, which means one quarter alone does not necessarily point to a longer-term trend.
The figures also show that demand remains spread across multiple parts of the later life lending market rather than being concentrated within a single product type. Some borrowers may be attracted to the flexibility associated with a lifetime mortgage, while others may prefer a product that allows them to continue making repayments. Determining which route is most appropriate depends on far more than a borrower’s age.
Borrowing decisions later in life are often linked to wider financial considerations. A client may be weighing up inheritance planning, retirement income, long-term affordability or support for family members alongside the borrowing requirement itself. This is particularly relevant given that Rely’s Next Gen Landlords research suggests that inheritance is set to become the primary route into landlording for many future investors, highlighting the increasingly important role property wealth may play across generations.
Others may be considering future care needs or the role housing wealth could play in meeting changing financial requirements. When the family home is often a person’s largest asset, it is understandable that many borrowers take time to assess their options carefully.
In later life lending, the value brokers bring extends well beyond identifying a suitable product. Understanding how different income sources interact, examining future objectives, assessing affordability over the longer term and explaining the implications of different borrowing strategies are all central to helping clients make informed decisions. Two products that appear similar at first glance can lead to very different outcomes depending on an individual’s circumstances.
That makes knowledge across the full later life lending spectrum particularly important. Clients may arrive with an initial view of the type of solution they want, but a more detailed discussion can often reveal alternative routes that better align with their circumstances and objectives. The latest UK Finance figures show activity across both lifetime mortgages and retirement interest-only lending, underlining the importance of understanding how different products fit different needs. Being able to assess the wider picture rather than focus on a single product category can make a significant difference to the outcomes achieved for later life borrowers.
The latest figures also highlight just how established later life lending has become within the wider mortgage market. Residential later life loans accounted for 7.8 per cent of all residential lending in Q2, while later life buy to let lending represented 20.6 per cent of the buy to let market.
The fact that more than one in five buy to let loans were advanced to later life borrowers demonstrates the breadth of the market. That figure highlights the role later life lending continues to play across different parts of the mortgage market, extending beyond owner-occupier borrowing alone.
Viewed in that context, later life lending is no longer a niche area sitting apart from the mainstream market. The figures suggest it is growing in line with the wider mortgage market rather than outpacing it, reflecting one of the themes highlighted in the latest update.
That has implications for brokers across the market, not just those who specialise in later life lending. As the sector becomes a more established part of mainstream borrowing, brokers are more likely to encounter clients whose circumstances require an understanding of the options available beyond traditional mortgage products. Having confidence in those conversations, and knowing when to explore alternative routes, can help ensure clients receive advice that reflects their full range of choices.
Whether a client is considering a lifetime mortgage, a retirement interest-only product, downsizing or refinancing existing borrowing, identifying the most suitable route depends on a clear understanding of their wider objectives.
The latest figures suggest demand across the sector remains healthy, but they also highlight the importance of advice. Helping clients understand their options, weigh those choices against their circumstances and select an approach that supports their long-term plans will remain one of the most important roles brokers play in the later life market.