View more on these topics

Later life lending market to double by 2029

The later life lending market is expected to almost double by 2029, according to data collected by more 2 life.

The firm says that by the end of this year, lending is anticipated to reach £295bn, with this figure expected to rise to £548bn by 2029 – growth of of over 85 per cent.

Despite this projection, research completed by the Centre for Economics and Business Research on behalf of more 2 life, shows that recent growth has in fact slowed slightly. In 2014, the equity release market was worth £200bn and is predicted to reach £397bn by 2024 – 98.5 per cent growth.

Borrowers in the over 65 category are forecast to accumulate £91bn of debt by the end of this year, and reach £199bn by 2029.

Furthermore, the analysis highlights that those aged 65 to 74 have average net yearly savings of £3,100, marginally higher than those under 30, who save £3,050. For comparison, those aged 50 to 64 put away £8,100 a year on average.

The lender believes that the increase in debt is accountable to a rise in older households, rising house prices, and consumers increasingly using unsecured credit.

More 2 life chief executive Dave Harris says: “With more people buying their first homes later in life and the increasing use of unsecured debt, we are finding that more people are entering retirement still committed to ongoing repayments.

“Not only are we seeing debt levels increase, but 65 to 74 year olds have just £3,100 left at the end of the year to save. This is a worryingly small safety net and suggests that managing debt in later life may well become the norm for some people.”

Key chief executive Will Hale adds: “The vast majority of people hope to enter retirement debt free – having ideally spent the run up to finishing work paying off any outstanding borrowing and building up their nest egg.

“Today’s report clearly highlights that not only is this not happening, but many retirees do not have the financial cushion they need to deal with unexpected bills.”


More 2 life appoints new BDM

More 2 life has appointed Sanjay Gadhia as its new business development manager. Gadhia has over 12 years’ experience in the financial services industry, previously having worked at Partnership, and most recently Dormakaba, where he held the position of BDM. In his new role Gadhia will be based in the south of the UK. More […]

More 2 life launches new product range

More 2 life has announced the launch of its ‘Capital Choice Lite’ product range. The products within the new range allow borrowers to release equity from their homes with a MER starting at 4.02 per cent for lump sums, and at 4.32 per cent for drawdown plans, according to the lender. The offers include fixed […]

PMS and Sesame launches new PT hub

PMS and Sesame has announced a new product transfer hub for advisers. The hub will provide advisers with access to a product transfers criteria grid, which supplies data on timeframes and the application process for each individual lender, according to the firm. In addition, the new service offers hints and tips on customer engagement strategies, […]

Buy-to-let watch: Adapting to an ageing population

There are always a variety of trends to follow in the housing market. In recent years we have seen large-scale house price fluctuations, regional housing bubbles, ageing first-time buyers, a buy-to-let boom and landlords reassessing the merits of their product portfolio. We have even seen a flurry of property raffles take place as sellers struggled […]

China tech and Global Alpha: a new great leap forward

By Robin Geffen, Fund Manager and CEO

Internet giant Alibaba is exactly the type of entrepreneurial company that the high-conviction, top-performing Neptune Global Alpha Fund seeks to invest in. Established just 14 years ago in an apartment in Hangzhou, today Alibaba is larger than Amazon and eBay put together and is challenging some of the most powerful internet companies in the world…

Read more 

Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.


News and expert analysis straight to your inbox

Sign up