The highest annual volume and value of mortgage loans to borrowers aged over 55 since 2014 occurred last year, according to UK Finance’s latest quarterly end-of-life mortgage report.
The report says there were 187,120 new mortgages to borrowers aged 55 and over taken out in 2021, totaling £28.1bn over the year.
This represents an 11% increase in mortgage volumes compared to 2020 and a 22% increase in loan values.
The broader mortgage market saw a 27% increase in loan values over the year, according to the report.
According to the trade body, the rise in lending to older borrowers has been spurred by the stamp duty exemption, which has prompted homeowners of all ages across the UK to move house or buy a second property.
Lending slowed in the fourth quarter, however, with 44,590 new mortgages granted to people over 55 and loans totaling £6.8bn, representing a 2.6% drop in mortgage volumes. mortgage loans compared to the third quarter and a decrease of 3.6% compared to the same quarter last year.
The quarterly decline is mainly explained by the end of the stamp duty exemption in September.
The volume of lifetime mortgages, however, increased during the fourth quarter of 2021 and totaled 10,860, an increase of 7.5% compared to the third quarter figures.
According to the report: “While the end of the stamp duty exemption caused purchase volumes to decline, lifetime mortgage and remortgaging volumes remained stable. This led to total levels lending to borrowers over age 55 at the end of 2021 remains above levels seen before 2018.”
“Looking at 2021 as a whole, mortgage volume to borrowers over 55 reached 187,120, higher than annual volumes since 2014 (when this data began to be collected).”
“The full effects can be seen in the total gross mortgage figure for 2021 of £28.1bn, a 22% increase on 2020 as higher purchase volumes led to a value higher loan average.”