There were 36,050 new loans made to older borrowers in the first quarter, down 4.8% year on year, UK Finance reveals.
The latest figures show that the value of these loans was £6.0 billion, an increase of 0.3% compared to the same quarter a year earlier.
5,300 new lifetime mortgages were granted in the first quarter, a decrease of 8% compared to the same quarter a year earlier and a decrease of 7.2% compared to the fourth quarter. The value of this loan was £490 million.
This also shows that 353 mortgages with interest only were granted in the first quarter, an increase of 5.4% on an annual basis.
The value of this loan was £33 million, unchanged from the same quarter a year earlier.
Q1 later life residential loans represent 8.2% of all residential loans, while Q1 later life BTL loans represent 20.1% of all BTL loans.
Commenting on the figures, Jim Boyd, CEO of the Equity Release Council, said: “Retirement is increasingly becoming a balancing act between pensions, savings and real estate assets, and today’s figures reflect that shift.”
“The decline in mortgage activity reflects the more cautious mood in the broader mortgage market, with economic uncertainty and pricing pressures continuing to slow decision-making. However, demand has clearly not disappeared.”
“The Pensions Commission recently reported that 15 million people are currently not saving enough for their retirement. As pressure on pensions continues to increase, home wealth will play an increasingly important role in increasing financial resilience in later life.”
“Modern senior credit products have changed significantly in recent years, with greater flexibility and stronger consumer protections helping to boost confidence in the market.”