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UK Finance Later Life Lending Data Q4: "Downvaluations are an ongoing issue in the later life lending market"

ended 27. February 2025

There were 35,840 new loans advanced to older borrowers in Q4 2024, up 28.2 per cent year on year, according to UK Finance data published today. The value of this lending was £5.6bn, which was up 38.6 per cent compared with the same quarter a year previously. Additional findings below. Newspage asked brokers for their views on the market, bottom.

  • There were 5,700 new lifetime mortgages advanced in Q4, up 6.7 per cent year on year. The value of this lending was £510mn, which was up 24.4 per cent compared with the same quarter a year previously.
  • There were 343 retirement interest only mortgages advanced in Q4, up 35.6 per cent year on year. The value of this lending was £35mn, which was up 34.6 per cent per cent compared with the same quarter a year previously.
  • Residential Later Life loans in Q4 represent 7.8 per cent of all residential loans. BTL Later Life loans in Q4 represent 21.8 per cent of all BTL loans.

6 responses from the Newspage community

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Bob Singh
Founder at Chess Mortgages
The whole Later Life Lending market needs a radical re-think and we can't always blame the valuers whose job it is to report the valuation accurately. More flexibility in the LTV's and product design could pave the way for better outcomes. Clearly a full and comprehensive understanding of the client's position is needed as well as possible future house price inflation. Where there is ability to repay monthly or make lump sum payments into the mortgage the lenders should show more latitude on the LTV. Valuations are an opinion and guide only and in times when price rises are low (and talk of an impending recession) it's natural for lenders and surveyors to exercise caution. It's disappointing Retirement Interest Only mortgages ( RIO's) have not taken a larger share where income post-age 75 is sufficient to service the loan. End of term solutions need to be found where so many who can demonstrate income are forced to sell and downsize due to not meeting lending criteria.
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Simon Bridgland
Broker at Charwin Private Clients
Later life borrowers generally fall into two camps, needs-based borrowing or lifestyle borrowing. The increases we are currently seeing in the latest lending data is a clear case of the former needs-based borrowing. External pressures due to the costs of living mean that regardless of the rate of a particular product, borrowers are seeking the ability to let their purses come up for air and just be able to relax from the huge strain pensioners are feeling. The downvaluations experienced by many is simply lenders playing cautious given uncertainty with wider economic influences.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
The later life lending market remains under pressure, with rising rates and persistent downvaluations creating challenges for borrowers. Despite this, demand remains strong due to a mix of the cost of living crisis and inheritance planning. Downvaluations are an ongoing issue in the later life lending market due to lender caution, economic uncertainty and a cooling property market. With house prices fluctuating and surveyors taking a conservative approach, borrowers often receive lower valuations than expected, reducing loan amounts. Looking ahead, demand for later life lending is likely to grow as retirees seek flexible solutions to navigate rising costs and changing financial needs.
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Jamie Elvin
Director at Strive Mortgages
The later life lending market is under pressure—rates are rising, valuations are falling and borrowers are feeling the squeeze. Yet demand remains strong, driven by pension shortfalls, inheritance planning and the ongoing cost-of-living crisis. The persistent issue of downvaluations in the later life market raises concerns—are surveyors being overly cautious, or is the market simply adjusting? As 2025 unfolds, the big question is whether lenders will step up or if borrowers will face tougher hurdles ahead.
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Justin Moy
Managing Director at EHF Mortgages
Much of the overall improvement in later-life lending has been rates driven, and as Gilt rates are currently increasing at the same time as Swap Rates are reducing, we are seeing a widening gap between traditional mortgage pricing and Lifetime Mortgage rates, which is making it a more challenging start to 2025. Coupled with some very conservative valuation figures, it is inevitable that numbers will be more restrained in 2025. Whilst demand will continue upward, many bulk at rates upwards of 7% when the mortgage market is hitting high 3%'s.
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Iain Swatton
Director at Exemplar Financial Services
UK Finance’s Q4 later life lending data reveals robust demand for equity release – as shown by an increase in lending – driven by strong interest from those nearing the end of their interest-only loans or seeking to boost retirement income. However, despite this strong demand, the borrowing landscape is being held back by persistently high interest rates and cautious (even negative) property valuations. While innovative products are emerging, these advances are largely stymied by the high-rate environment and delays caused by overzealous solicitors on behalf of lenders. Until we see a tangible drop in rates, equity release will remain a solution largely out of reach for those it’s meant to support.