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Older borrowers, new opportunities

The expansion of later life lending in the UK mortgage market

Darren Deacon

Family Building Society

Industry experts

Leon Diamond

LiveMore Capital

With over 37 years of financial services experience across high street and specialist lending, Darren Deacon has worked as a mortgage underwriter, mortgage adviser and mortgage business development manager. He takes pride in driving excellent customer service, and was delighted when the intermediary sales team were recognised by MoneyFacts as the Best BDM Team last year. Deacon and the rest of the team talk to brokers about almost every case they bring to Family Building Society and focus on helping them to support their customers.

Family Building Society

Darren Deacon

With an extensive financial background, Leon Diamond was previously a non-executive director at Responsible Lending Limited. In 2010, he founded Mansard Capital Management, an investment manager, and Mansard Capital LLP. Diamond sold the latter to AJ Bell, one of the UK’s largest investment platforms, before serving as head of investments.From 2014 to 2019, he was a co-investor with Sellar Development Fund, a property investment venture.

LiveMore Capital

Leon Diamond

“We developed the LiveMore Mortgage Matcher, which allows a mortgage broker to input their customer’s details and then, if the customer doesn’t fit the affordability assessment, we’ll [offer] a different type of mortgage to that broker”

Leon Diamond, LiveMore Capital

LATER LIFE life lending has fast moved from a niche product to a core part of the UK mortgage market, with more and more people looking to secure a loan at an older age. According to recent figures, there were 41,100 new loans advanced to older borrowers in Q4 of 2025, up 15.1% year on year, with the value of lending reaching £6.8 billion − which was up 20.5%. It’s a booming business − and one that’s showing no signs of slowing down. In a recent interview with Mortgage Introducer, Leon Diamond, chief executive officer and founder of LiveMore Capital, and Darren Deacon, head of intermediary sales at Family Building Society, came together to discuss what this rise in popularity means for the sector, what’s driving this increased interest in later life lending in the UK and how later life lending really differs from other, more mainstream options. “Later life lending starts much earlier than many people realise,” explained Deacon. “It’s often associated with borrowers aged 50 to 55 years [old]. [However,] we know that the journey can begin decades [earlier]. It’s not uncommon for a 35-year-old as a first-time buyer [to take] a 30- or 40-year mortgage − [meaning] they’ll be borrowing later into life.” Because of that wide age range, Deacon is clear that any affordability assessments here must evolve beyond just simple salary questions to include future passive incomes, such as state pensions, pension pots, ISAs and rental incomes.

“There was a stigma around later life borrowing; [however,] I’ve seen, over the last decade or so, that starting to diminish with increased regulatory focus, growing competition and product innovation”

Darren Deacon, Family Building Society

And with older borrowers drawing from these pots, it’s up to lenders to think on their feet to balance flexibility with responsible lending standards. As Diamond explained, this really is where technology comes into play. “[At LiveMore Capital], we’ve leveraged technology − we’ve even developed our own technology from a data science background. We continually use AI to evolve our underwriting policy and improve our decision [making] − we want to say a stronger ‘yes’ upfront and allow the broker to understand the probability of getting that complex claim over the line. We align our policy with Financial Conduct Authority MCOB rules, as well as understanding how we’ve lent to date in a very responsible way. And, in terms of defaults, we’ve got zero on our book to date − so I think we’re moving in the right direction with over 5,000 customers and borrowers who’ve worked with us.”

That balance between using technology and human expertise is impacting the landscape of lending, improving accuracy, speed and consistency while impacting the overall broker experience. For Diamond, this tech is helping his people become a lot more efficient − but the human element is still very much needed. “There is, in some cases, still a manual underwriter at the end,” he said. “We just want to work with brokers to make their lives more efficient. And so we developed what’s called the LiveMore Mortgage Matcher, which allows a mortgage broker to input their customer’s details and then, if the customer doesn’t fit the affordability assessment, we’ll [offer] a different type of mortgage to that broker to give them options. “Alternatively, if they don't like those options, we’ll highlight where they can potentially add additional income fields to get to either that affordability they want or highlight the maximum affordability. We see our job as working with brokers to make them more efficient and to give them the solutions to give back to their customers.”

“LiveMore Mortgage Matcher allows you to see the different types of mortgage solutions based on the affordability of that customer. [As such], giving the correct fact-find − speaking and working with brokers on that fact-find − [means] we can really show the ‘art of the options’, give better customer outcomes and actually have borrowers who’re able to borrow and not be turned away from this market, as many are.” Deacon agreed, adding that many older borrowers have rather complex income streams, meaning they need more flexible options. “They really need a more nuanced judgement and context to the lending,” he said. “And so automated models alone often can’t do this. With our flexible approach, later life lending options remain our responsibility − and I think technology does support this [through] data processing, verification and consistency.

Happy elderly spouses counting monthly expenses, checking financial documents and family budget, sitting on couch at home

“[Here], through manual underwriting [practices], lenders can apply responsible affordability assumptions,” he explained. “For example, [at Family Building Society] we apply a modest haircut to a pension pot and divide that across the balance for the mortgage term which gives us a more realistic affordability picture. The restriction I see with a high-street credit scoring model is that it doesn’t always align [with] this tailored approach − it doesn't fit the complexity of modern later life incomes.” Diamond echoed Deacon’s sentiments here, adding that at LiveMore Capital they’ve always been focused on this over-50s market.

Deacon is also changing up Family Building Society’s processes to see how and where technology can be deployed to improve the workflow for their people and the outcomes for their customers. “We know that technology is rapidly changing mortgage underwriting,” he explained. “I don’t think that it will necessarily fully replace human judgement in the markets we operate in. [However], I know we've seen advances in AI, machine learning and automation that are streamlining document processing − and that does improve accuracy and reduce decision times.” For the broker, the biggest tech benefits here mean cleaner case submissions and greater transparency. As Diamond explained, tech essentially gives them more time to focus on client advice rather than wasting energy worrying about administration. “And that’s something we could all do without,” he said.

Later life lending growing in popularity

41,100 new loans were advanced to older borrowers in Q4 of 2025

“We’ve just recently moved that down to being 40s and above,” he said. “[We work] with brokers to take into account pensions, savings and investments. It could be a buy-to-let property, it could be an insurance product, it could be gifting − we understand the [exact] affordability of that person, not only today but through the life of that mortgage. And so we work with brokers on finding the right solution for a customer for their life.”

This approach is very much aligned with market sentiment in the UK. Mortgage technology is evolving at an exponential rate, with more and more firms opting to use AI to help streamline processes. However, it’s really about understanding how the best tech can be deployed for consistency − and equally understanding what it can’t be used to mimic or replace. As Deacon went on to say, going beyond tech, responsible lending is at the heart of everything his team does in this space. “We’re no different to any other part of the mortgage market. I think, contrary to some perceptions, lenders in the later life space can sometimes be seen as overly cautious. We’ve got a very low average LTV and very low arrears − negligible in fact. We’ve also got customers that typically have strong credit histories with a good proven track record of paying their mortgages coming to us with a variety of reasons − be it through purchase, remortgage or capital raising. They have strong and varied incomes [too]. [As such], we have a strong approach to manual underwriting. It’s crucial for us that we can see that the income is sustainable in order to get to the right lending outcome. We adhere to the same responsible lending standards as any mainstream bank.”

Read on

It’s the unique partnership between innovative technology and the human touch that’s inherently needed when dealing with clients that’s the real secret to success in the months and years to come. And while streamlined tools are great for saving time, people tend to want to talk to people − especially when making big decisions. According to research from Trustpilot, 51% of customers would rather speak to a person than a chatbot and 26% actually want an even more personalised experience in the future. So keeping that human element is essential − especially when assessing affordability frameworks for older borrowers. “I would say that our affordability assessment is more detailed,” said Diamond. “It gives us a better understanding of the customer [rather than] just looking at straight income. We’ve integrated with Mortgage Advice Bureau’s CRM system, which allows them to ask the appropriate questions and then spits out the ‘art of the possible’. Often a lot of the sourcing systems out in the market are quite linear − where you need to search for the product.

“And, for me, that complements the human aspect we bring to this. So I don’t think it fully replaces experienced human underwriters, which we’ve got a lot of now, but I think we all know people are living and working longer. Affordability models need to adapt to the reality of modern retirement. Lenders [need] a more flexible framework to make sure that their incomes are being fully assessed and understood. Ultimately, [it’s about] getting to the right mortgage solution − I believe that manual underwriting is crucial and plays a big part in that.”

Family Building Society is the UK’s 11th largest building society, with over 69,000 members and £2.7 billion of assets. A mutual organisation, owned by its saving and borrowing members, over 80% of borrowings are raised by deposits from individuals. Our mortgage products are underwritten by a team who look at each case on an individual basis based on common-sense and tailored credit checks rather than credit scoring. We’re proud to have been awarded Legendary Lender by Knowledge Bank in 2026, recognising us as a lender who consistently goes above and beyond for brokers through outstanding service, support, and criteria clarity. We also have a five-star broker rating from Smart Money People.

Find out more

Complex cases deserve a YES. At LiveMore, we lend to clients from age 40 and beyond, with the widest range of mortgage solutions up to and into retirement − including standard mortgages, TIO, RIO and equity release. Our Mortgage Matcher® technology takes a holistic view of clients’ assets and income to unlock maximum affordable borrowing in minutes. We’re backed by common-sense underwriting and a team fighting for that YES. When other lenders say NO, we say bring it on!

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‘We know that technology is rapidly changing mortgage underwriting’

Published 06 April 2026

That’s up 15.1% year on year

The value of lending is now £6.8 billion − up 20.5%

Source: UK Finance

£810 million of lending was to borrowers aged 65 to 70

A boom in boomers securing mortgages

That’s up 26.56%.

£650 million of lending went to those aged over 70 – an increase of 6.56%

51% of customers would rather speak to a person

Regulation is also changing the landscape of later life lending, with regulatory discussions from bodies such as the Financial Conduct Authority (FCA) shaping the future of the market. According to a recent report, the FCA will be reviewing retirement interest-only requirements to make them more accessible, exploring ways to improve advice to help people confidently plan for later life and even conducting a focused market study to ensure the later life mortgage market can meet the changing needs of customers. All of which are making waves in the market. “It was good to see the FCA’s consultation paper last year,” said Deacon. “And the fact that later life lending was given so much focus really highlighted the growing importance of the market. [The paper] also reflected on all sorts of different trends such as older first time-buyers and people working longer. It really highlighted that later life lending should not be seen as a niche or a specialism, that it’s actually part of the standard normal mortgage lifecycle. In recent meetings that I’ve attended, people from the FCA have said that they’re looking to reform the affordability assessment of RIO mortgages, which is not before time in my personal opinion. “In the next five years, I can only see that by the FCA shining a light on the sector − we will get greater engagement from regulators, trade bodies, lenders and intermediary networks to improve awareness and standards across the whole sector.”

FCA changes and updates

With that in mind, Diamond believes it’s clear that this growth isn’t a short burst but rather a reflection of a shift in UK demographics and the changing needs of customers. “This market’s growing,” said Diamond. “We’ve got an ageing population that's sitting on one of the [largest] amount of land wealth in the country and underfunded pension schemes − [all while] the cost of living is increasing. The FCA’s report is timely − they see that this market is growing and the need to get ahead of an expansion of what historically used to be later life lending.” Diamond firmly believes that this market is heading towards being viewed as totally mainstream. And, as such, meeting a borrower’s affordability needs requires understanding their needs in more detail.

A growing market opportunity

“[It’s about] asking the affordability questions,” he added. “The interesting part the FCA highlighted are potentially ways of bringing together rules and educational process – so an advisor can not only advise on mainstream mortgages but also consider equity release amongst other mortgages that they are considering to give the customer, the underlying borrower, the best outcome. It’s all super positive − I think the momentum is gaining traction.”

However, while the market is moving in the right direction, there’s still more that could be done to shine a light on later life lending and it’s key role in the UK mortgage market. As Diamond told Mortgage Introducer, trade bodies could possibly do more to support holistic later life advice in the space. “[There needs to be] clarity around wording,” he said. “Right now in the market there’s some grey area around the rules [of what’s] seen as an equity release mortgage. We see the Dutch model coming into the market, [that’s] taking out a 50-year term [mortgage] − that’s a lifetime mortgage. I think we need to put the borrower first, [it’s about] how they interpret wording and then start to build up [from there]. “There’s clarity of use of language that needs to occur to grow the market and to give the borrowers comfort. Then [there’s] also bringing in an educational piece together that allows mortgage brokers clarity on whether to advise on all products or when to hand off to other people. I do think some more can be done in conjunction with the mortgage industry, brokers and lenders to get clarity for the underlying borrowers to grow the market.” Deacon echoed Diamond’s thoughts here, adding that in a discussion earlier in the year they both debated this very topic with other industry leaders. “There was a lot of back and forth in terms of what the trade bodies can do. I’m seeing trade bodies working collaboratively, which is good. I think one of the discussions that came out of it was what is the remit of true holistic advice? How far does that go? I 100% agree [that] education is essential to delivering better outcomes for customers. The gold standard for a mortgage adviser would be for somebody that’s effectively a one-stop shop − that will take a first-time buyer all the way through to later life lending and [deal with] everything in between. [While that’s] a little bit too optimistic, I do think that through education, mortgage advisers need to broaden their understanding of all of the later life options − including affordability-based lending alongside equity release and lifetime mortgages.”

‘Clarity around wording’

Looking to the future of this market, both speakers are highly optimistic here too. As Deacon revealed, it’s all looking super positive for later life lending in the UK. “We know it’s a growing sector, that’s for sure − there’s a massive opportunity for high-quality advice. I think there was a stigma around later life borrowing; [however,] I’ve seen, over the last decade or so, that starting to diminish with increased regulatory focus, growing competition and product innovation. [This will bring] the [sector] to a more mature and customer-focused market as well. As a result of all of that, later life [lending] is set to be increasingly more important in the mortgage life cycle, not only supporting themselves as borrowers but also their wider family members. I can only see that it’s on an upward trajectory.” In Diamond’s mind, the opportunities for the later life lending market are endless − especially when it comes to helping people live a better, more stable life. “We’re one of the fastest-growing sectors in the market,” added Diamond. “A wonderful number of people are buying their first house later in life − [they’re] living longer and healthier − and pensions are getting squeezed [as] the cost of living is rising. “[As such], you’re taking into account pension income and other forms of income. Why wouldn’t you be able to get on the property [ladder], remortgage your house or take some money off the table to live better? We’re super excited about the market, we think it continues to grow, [and] we love where the regulators are moving and engaging, speaking to lenders, to brokers, to trading bodies to get a better outcome. [And those] better outcomes grow the market. We're very excited about the coming years in this space [where there’s] opportunity to satisfy and also improve the UK economy, allowing people to live a better life.”

‘We’re one of the fastest growing sectors in the market’

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