Three-fifths of lifetime mortgage borrowers now under 70

The average age of a lifetime mortgage customer continues to fall, falling to 68 years old in Q3, according to new data from Pure Retirement.

The lifetime mortgage lender has analysed its own data across Q3 of this year to present an image of the average lifetime mortgage customer across this quarter, comparing the findings both quarter-on-quarter and year-on-year.

In keeping with wider market trends, the lender has found that the customer age profile continues to get younger; under-70s now represent 59% of all new initial advance activity, compared to 43% at the same point in 2023, and 50% in Q2 of 2024. Conversely, the proportion of business coming from over-75s has reduced to sit 15%, down from 31% a year ago and 23% in Q2 of this year. 

The average new lifetime mortgage customer age continues to get younger, and currently sits at 68.

The lender has also found that, for the first time, there is a preference for drawdown over lumpsum plans among new customers. Over the last quarter, 51% of new customers chose this plan – this is in stark contrast to a year ago (where only 41% of new customers preferred drawdown plans) and Q2 of this year (where 46% chose drawdown plans). 

Among single life applicants the proportion being women continues to grow, and currently sits at 70%. This contrasts with the 64% at the same point a year ago, and 67% in Q2.

Overall loan usage has remained remarkably static on both a quarter-on-quarter and year-on-year basis, both in terms of the top five most common uses, and the proportion of business they represent.

Splitting out loan usage among drawdown and lumpsum highlights the different ways these two cohorts use released funds, however. Lumpsum customers are far more likely to use their released funds for needs-based reasons, with the 31% proportion being both twice as high as that seen among drawdown customers, and a 4% rise year-on-year. 

Conversely, 15% of drawdown customers released funds for holidays (a consistent level over the past year), while this particular use hasn’t been seen in the top five uses among lumpsum customers at all in 2024.

Pure Retirement CEO, Paul Carter, commented: “These latest figures continue to underline the importance of effectively using data to fully understand customers so that in turn we, as a sector, can continue to deliver best outcomes for them. The increasing levels of activity among younger and single female applicants, as well as the divergent usage patterns among lumpsum and drawdown customers, highlight the diverse audience lifetime mortgages have continued to serve throughout 2024, providing exciting opportunities for the market going forward.”