Reverse mortgage settlements fell by more than 20 per cent in the first half of the year as retirees put spending plans on hold in the face of rising interest rates.Figures released by Deloitte Actuaries and Consultants yesterday show settlements of $180 million in the six months to June (an annualised rate of $360 million), compared to $466 million for the full year in 2007 and $520 million in 2006.Deloitte Actuaries and Consultants partner James Hickey said: "The settlement figures are against a backdrop of a more constrained lending market. It has been a difficult year for lenders, with borrowers also choosing to be more cautious."A significant number of lenders have left the reverse mortgage market this year. The chief executive of the Senior Australian Equity Release Association of Lenders, Kevin Conlon, said he did not believe the withdrawal of lenders had affected demand.Conlon said: "There is still a wide range of product in the market."The reverse mortgage market grew from $2.02 billion in December to $2.3 billion in June. The number of loans increased from 33,741 to 36,638. The average loan size was $62,840 at June.