The Intermediary – September 2026 - Flipbook - Page 81
L AT E R L I F E L E N D I N G
Opinion
Choice, not age, is
shaping later life
borrowing
O
ne of the biggest
misconceptions in
later life lending is
that borrowers over
55 all share the same
priorities.
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. 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.
Demand also remains spread across
multiple parts of the later life lending
market. Some borrowers may be
aracted 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 oen linked to wider financial
considerations – inheritance
planning, retirement income, longterm affordability, support for family
members. 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 oen a person’s largest
asset, it is understandable that many
will assess their options carefully.
Understanding complexity
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 later life
lending decisions. Two products that
appear similar at first glance can lead
to very different outcomes.
That makes knowledge across
the full later life lending spectrum
particularly important. Clients may
arrive with an initial view of the
solution they want, but a detailed
discussion can oen reveal alternative
routes that beer align with their
circumstances and objectives.
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.
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% of all residential
lending in Q2, while later life buy-tolet (BTL) lending represented 20.6% of
the BTL market.
More than one in five BTL loans
were advanced to later life borrowers.
JON HALL
is group chief commercial
officer at OSB Group
That figure highlights the role
later life lending continues to play
across different parts of the mortgage
market, extending beyond owneroccupier borrowing alone.
Later life lending is no longer a
niche area siing apart from the
mainstream market. 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 longterm plans will remain one of the
most important roles brokers play in
the later life market. ●
September 2026 | The Intermediary
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