This is the first time this proportion has been reached since records began, and demonstrates that later life mortgage lending is set to become more significant in the future.

Later life mortgage lending, is increasing in popularity due in part to an aging population. However, according to UK Finance, a more significant driver appears to be steadily increasing mortgage terms over the past 15 years.

Mortgage lending to older borrowers has increased in popularity since 2014, returning to pre-pandemic levels in 2021. This is driven in part by increases in house purchase due to the stamp duty holiday, but also by stability in lending across different products. Older borrowers have continued to access a wide range of products as lenders have largely overcome the logistical and affordability challenges presented as a result of the covid-19 pandemic relatively quickly.

Over the past five years, mortgage lending to over 55’s has continued to grow, even where gross lending in the wider mortgage market has remained subdued; in part due to loans to older borrowers having strong affordability.

Within the wider later life lending market, lifetime mortgages (also known as equity release products) have continued to grow in popularity over the past seven years as older homeowners look to access the equity in their homes. There has been a recent modest reduction in lifetime mortgages, due in part to the Covid-19 pandemic, however this reduction is expected to be temporary as pandemic restrictions are lifted.

Charles Roe, director of mortgages at UK Finance, said: “There’s been growing demand for mortgages from those aged over 55 and this is set to continue as more people live and work for longer.

“For the first time since records began more than half of all new mortgages are due to end after the homeowner’s 65th birthday, and lending to over 55s has grown even where mortgage lending in the wider market has remained subdued.

“Later life lending both now and in the future will be imperative as existing homeowners look to later life products for accessing equity as they get older.”

Jim Boyd, chief executive of the Equity Release Council, added: “UK Finance’s findings underscore the integral role that later life lending plays in consumers’ long-term security. Attitudes towards home finance in later life have changed, and homeowners are increasingly comfortable with mortgage borrowing into retirement and open to the benefits of realising some of their property wealth as they age.

“Property wealth can play an important part in a holistic approach to funding retirement and, as an industry, we must work together to ensure consumers get the information they need to weigh up increasingly complex financial decisions to do this.”