CashNews.co
Lifetime mortgages saw a sharp decline, with 5,830 loans advanced in Q3, down 18.8% year-on-year. The total value of this lending fell by 8.9% to £510 million.
In contrast, retirement interest-only (RIO) mortgages experienced modest growth. A total of 306 RIO loans were advanced during the quarter, up 0.3% year-on-year. The value of RIO lending rose more significantly, increasing by 10.7% to £28 million.
Residential later life loans accounted for 7.7% of all residential lending in Q3, while buy-to-let later life loans made up 21.7% of all BTL lending, the UK Finance report showed.
Richard Pike (pictured), chief sales and marketing officer at Phoebus Software, said the data highlights positive momentum in the later life lending market.
“Each quarter this year, we’ve seen rises in the number of new loans advanced to older borrowers. It’s grown from 28,840 in Q1 to 33,480 in Q3,” he added. “The value of lending is up from £4.3 billion in Q1 to £5.2 billion in Q3. While the number of new lifetime mortgages sold in Q3 are down 18.8% year on year, there were still more mortgages advanced than in Q2 and Q1.