Vernon Building Society has reported a sharp increase in later life lending, with retirement interest-only products seeing the strongest demand following last year’s refresh of its proposition.
The society said later life lending in the first quarter of 2026 was 215% higher than in the same period of 2025.
The growth follows a 107% year-on-year increase in 2025 against 2024, suggesting rising demand from brokers and borrowers for mortgage products designed around more complex financial circumstances in retirement.
Vernon said demand had been strongest for retirement interest-only products, as well as in and into retirement applications.
The average borrower age so far is 71, while the oldest borrower is 91. The society said this reflected the absence of maximum age restrictions across its later life range.
The products can also take account of a range of income sources, including existing assets and pension provisions on a drawdown basis, even where they are not currently being accessed.
Brendan Crowshaw, head of mortgage and savings distribution at Vernon Building Society, said: “We’re seeing strong demand for later life borrowing, and the uplift in RIO, In and Into Retirement applications shows that brokers are increasingly looking for solutions that can flex around their clients’ circumstances.
“Our refreshed Later Life range was designed to give intermediaries and borrowers more options, with products that are backed by personal underwriting and a case-by-case approach.
“Later life lending is not one-size-fits-all. Borrowers may be supporting family, managing pensions, downsizing or unlocking equity for a range of reasons, and our aim is to provide products and service that reflect that reality.
“The growth we’ve seen so far this year is encouraging and shows that there is real demand for specialist and flexible lending in this part of the market.”
The society said the performance formed part of its wider focus on specialist mortgages and support for brokers handling more complex borrowing needs.
