more2life data shows under-70s account for nearly two thirds of interest-paying equity release cases in the UK
Six in ten equity release customers choosing to pay interest on their loans — rather than letting it roll up — are aged under 70. New customer data from later life lender more2life puts that share at 63.6% across the first nine months of this year.
The figures point to a shift in how homeowners are engaging with later life lending. Among standard lifetime mortgage customers, where interest accumulates rather than being serviced, the same age group made up just under half — 49.9%.
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Younger clients are choosing to service their equity release interest
Borrowers aged 60 to 64 formed the single largest group among Interest Reward customers, at 25.9% of all cases. Clients aged 55 to 59 also represented a higher proportion of Interest Reward lending than they did of standard lifetime mortgage borrowing.
The data indicates that earlier-stage borrowers are more likely to opt for products that contain interest over the long term. A borrower who takes out a lifetime mortgage at 60 may hold it for 25 to 30 years. Over that period, unchecked compounding can substantially reduce the equity remaining in a property.
Advisers covering later life lending solutions will recognise the profile. Many borrowers in their late fifties and early sixties remain in work. That income can fund interest repayments that older clients, further into retirement, may not be able to sustain.
“Someone who takes out a lifetime mortgage at 60 could have it for 25 or 30 years, so the way interest builds up makes a big difference to what’s left at the end,” said Dave Harris, chief executive of more2life. “We’re also living in a time where many people in their late 50s and 60s are still working and can put some of that income towards the interest.”
How does an Interest Reward lifetime mortgage work?
Interest Reward products offer customers a reduced interest rate in exchange for committing to qualifying repayments. Containing interest build-up helps borrowers hold on to more of their property’s value and retain options if their financial situation shifts during retirement.
more2life originates around one third of UK lifetime mortgages, which gives its customer data broader market significance. The lender describes its Interest Reward range as the widest available in the UK.
Appetite for similar structures is growing across the sector. LV= added an interest reward option to its own lifetime mortgage range in September 2026, offering rate discounts tied to the proportion of interest paid.
Harris said the pattern in more2life’s data reflects a wider shift in adviser and client behaviour. “The later life lending conversation is evolving,” he said. “While lifetime mortgages were historically often viewed as a solution that customers considered relatively late in retirement, we’re seeing homeowners engage with advisers much earlier.”
Why should advisers review their approach to later life clients?
For mortgage professionals, the trend has a direct practice implication. Advisers must increasingly assess not just whether a lifetime mortgage is appropriate, but which structure fits best. This includes deciding whether roll-up or interest-servicing is the best approach, given a client’s income, age, and retirement goals. A feature on later life lending trends has tracked this shift.
“Some customers want to prioritise preserving equity, others want additional retirement income, and many are trying to balance multiple objectives simultaneously,” Harris said. “No two customers are the same.”
more2life is running its ‘Unlock today, protect tomorrow’ webinar series, covering sustainability of regular repayments, whole-of-market sourcing, and how Interest Reward products compare against standard roll-up alternatives. The next session is on 23 October.
