Borrowers under the age of 70 account for nearly two-thirds of more2life’s lifetime mortgage customers who choose to make interest payments, according to figures covering the first nine months of 2026.

Data from the lender shows that 63.6% of customers taking out its Interest Reward products were under 70, compared with 49.9% of those choosing standard lifetime mortgages where interest is added to the outstanding loan.

The largest proportion of Interest Reward customers were aged between 60 and 64, accounting for 25.9% of cases. Borrowers aged 55 to 59 were also more strongly represented among customers making interest payments than those taking out conventional roll-up products.

The findings indicate that younger borrowers entering the equity release market are more inclined to manage the accumulation of interest, potentially reducing their borrowing costs and preserving a greater proportion of their property wealth.

MANAGING LONG-TERM BORROWING COSTS

Interest Reward lifetime mortgages allow borrowers to secure interest rate reductions by making qualifying repayments. This can limit the effect of compound interest over the life of the mortgage and reduce the amount ultimately owed.

The distinction can be particularly significant for customers taking out equity release products in their late 50s or early 60s, when the borrowing period could extend over several decades.

More2life, which says it accounts for approximately a third of UK lifetime mortgage lending, believes the figures reflect growing consideration of different repayment arrangements as part of retirement planning.

Dave Harris (pictured), chief executive of more2life, said: “The later life lending conversation is evolving and 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 and take a far more proactive approach to planning.

“The fact that Interest Reward products are attracting a significantly younger customer base suggests many borrowers want to stay flexible while also taking practical steps to manage the long-term cost of borrowing.

“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. 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.”

ADVISER CONSIDERATIONS

The lender is encouraging advisers to assess whether customers can maintain regular interest payments over the longer term, alongside considering standard roll-up lifetime mortgages and other borrowing alternatives.

It is running a series of webinars under the title ‘Unlock today, protect tomorrow’, examining payment sustainability, whole-of-market product comparisons and the suitability of different lifetime mortgage arrangements.

The remaining sessions are scheduled for 16 October and 23 October.

Harris added: “Some customers want to prioritise preserving equity, others want additional retirement income, and many are trying to balance multiple objectives simultaneously.

“Just as importantly, we’re committed to continuing to drive awareness of these options among advisers and consumers alike. Better understanding of the choices available helps ensure more customers are matched with the right solution for their individual needs and retirement goals.”