Mortgage lending to older debtors jumped within the first quarter of this 12 months, in keeping with figures from a banking and finance business physique.
The figures from UK Finance present a quarterly perception into mortgages taken out by debtors over the age of 55, overlaying “mainstream” lending to older debtors, in addition to specialist merchandise comparable to lifetime mortgages.
Some 38,510 new loans have been superior to older debtors within the first quarter of this 12 months, marking a 33.5% annual rise.
The worth of this lending was £6.1 billion – a soar of greater than two-fifths (42.6%) in contrast with the identical quarter a 12 months beforehand.
There have been 5,620 new lifetime mortgages superior within the first quarter of this 12 months, up 11.1% year-on-year. The worth of this lending was £530 million, which was up 39.5% in contrast with the identical quarter a 12 months beforehand.
There have been 339 retirement curiosity solely mortgages superior within the first quarter, up 19.4% year-on-year.
The worth of this lending was £33 million, which was up 17.9% in contrast with the identical quarter a 12 months beforehand.
Toby Leek, president of NAEA (Nationwide Affiliation of Property Brokers) Propertymark mentioned: “It’s encouraging to see the mortgage panorama evolving and making higher provision throughout the board, particularly for people who find themselves aged 50-plus.
“Nevertheless, there are two sides to the coin to think about. This may be right down to underlying points concerning the price of residing and the way this could be impacting many older debtors, particularly as a result of they’re having to delay paying off their mortgages till a lot later in life.
“As well as, shifts in client wants may be right down to components comparable to greater rates of interest and ever-increasing family payments making a considerable dent in affordability.”
Helen Morrissey, head of retirement evaluation at Hargreaves Lansdown, mentioned: “Over the long run, we are able to count on these figures to maintain growing.
“Rising home costs imply persons are getting onto the property ladder later and taking longer mortgages, so even when all the things in life goes to plan, they are going to be paying their mortgage past the age of 55.
“Some will be capable of work later and use the additional money to satisfy these outgoings, some may have windfalls throughout their working life to assist repay lump sums, however others face troublesome retirement spending decisions.”
