UK later life lending rises 13.4% in Q2 2026

Later life lending in the UK saw a 13.4% annual increase in the number of new loans advanced to borrowers aged 55 or over during the second quarter of 2026. According to data from UK Finance, 37,300 new loans were issued in Q2, with a total value of £6.2 billion, representing a 20.5% increase compared to the same period last year.

While lifetime mortgages saw a slight year-on-year decline of 1.7%, retirement interest-only mortgages rose by 5.9% to a value of £31 million. Experts suggest the growth reflects a shift in mindset, with more individuals utilizing property wealth to boost retirement income, support family, or fund lifestyle goals rather than viewing equity release as a last resort.

However, industry observers noted a significant advice gap. Despite the growing market, only a small fraction of the UK's 35,000 mortgage advisers are qualified to advise on equity release. Experts warn that this lack of specialized knowledge, combined with outdated perceptions of the risks involved, may prevent older borrowers from accessing flexible products designed to manage cost-of-living pressures and retirement needs.