More customers using lifetime mortgages to repay mortgages and debt

Nearly three in ten (27%) new lifetime mortgage customers listed repaying debts and mortgages as the primary reason for taking out lending in Q1, according to research from Pure Retirement.

The latest figures represent an uptick from 21% in Q1 2024 and from 25% in in Q4 of last year.

Home improvements have stayed static on a quarterly basis, accounting for the primary reason for borrowing among 22% of new customers in Q1 – a reduction from the 25% seen at the same point in 2024.

Holidays (9%), gifting (8%), and car purchases (7%) round out the top five most common primary reasons for borrowing, shifting little on both a quarterly and annual basis.

The majority of new business remains on a joint lives basis, accounting for 57% in Q1, although this is the lowest levels seen on both a quarterly and annual basis – albeit by only a couple of percentage points. Customers are evenly split between taking out lumpsum and drawdown plans, marking a slight change from the 51% drawdown preference seen in Q4 of last year.

The proportion of single women applicants is at the highest level seen in a year, representing nearly seven in ten (68%). This has risen from 63% in Q4 and the 66% seen in Q1 of last year. 

Additionally, on an annual basis the proportion of single applicants who are widowed has reduced by 9% annually, to sit at 29%, while the proportion of single applicants who are unmarried has risen from 21% in Q1 last year, to 35% this year.

Pure's CEO, Paul Carter, commented: “The latest findings continue to demonstrate the evolving customer profile within the later life lending space, and the way its proving an effective solution for a diverse range of demographic profiles. We remain hopeful that this will form the basis of the market’s recent onward trajectory, and look forward to continuing to innovate and providing support to provide advisers with the tools they need to deliver best outcomes for their clients.”