The Intermediary – July 2025 - Flipbook - Page 6
ROOTED
IN CHANGE
HOW LATER LIFE LENDING IS GROWING
INTO THE MORTGAGE MAINSTREAM
by Jessica O'Connor
Once considered the final chapter in a
understanding of how lending needs are evolving
homeowner’s financial story, later life lending
with age.
is quietly redefining its place in the financial
lifecycle. No longer a niche solution for the few,
Retirement redefined
it is an essential consideration for a growing
The traditional image of retirement – an end to
proportion of the population – both earlier and
work at 65, a gold watch, and a final payslip – has
later than expected.
largely faded into obscurity.
Homeowners are increasingly engaging with
where individuals in their fifties and sixties
years, while others are entering the later life
remain economically active, often working part-
lending market in their early fifties, decades
time or scaling back work hours gradually.
before the ‘traditional’ retirement age.
In Q1 of this year, more than 38,510 new loans
According to Mark Gregory, founder and
CEO of Equity Release Group: “Retirement
were advanced to older borrowers alone, marking
is increasingly seen as a gradual transition,
an annual increase of 33.5%, according to UK
with many people working part-time or in
Finance. This uptick has been driven by a number
consultancy roles beyond state pension age.”
of factors, including longer life expectancy, rising
This shift is not just cultural, but financial.
living costs, complex family structures, and the
In the UK alone, there are now more than 22
growing use of property wealth as a planning
million people aged 50 and over, representing
tool, rather than a last resort.
38% of the population, according to the Centre
It clear that this shift is not just an emerging
for Ageing Better. In addition, life expectancy
product trend but a generational transition in
continues to rise, reaching 79.0 years for males
how wealth is accessed, transferred and managed.
and 82.9 years for females in 2022, according to
As the market deepens its roots in early
financial planning, it provides a broader reach
the Office for National Statistics (ONS).
Gregory notes that this increased longevity,
across varied borrower profiles, thus providing
along with evolving lifestyle expectations, is
a structure that reflects the diverse needs of
prompting more people to seek “flexible, long-
modern later life.
For intermediaries, navigating this terrain
requires both a strategic view and a nuanced
6
In its place is a more fluid, phased transition
mortgage products well into their retirement
The Intermediary | July 2025
term financial planning solutions that can adapt
over time,” often with housing wealth playing a
key role in supplementing pension income.
