Research from lifetime mortgage lender Pure Retirement has shown notable increases in the average property value among new customers in the third quarter of 2024.
The data reveals that the average property value among new lifetime mortgage customers reached £423,434, representing a 4% rise compared to the same quarter last year, and a 3.2% increase from Q2 this year, where the figure stood at £409,811.
This rise is particularly striking when compared to the broader national market. According to Nationwide’s house price index, national house prices increased by 2.5% annually and 0.7% quarterly, indicating that property values among Pure Retirement’s new customers have been increasing nearly five times faster than the national average over the last quarter.
The findings highlight a shift in the profile of lifetime mortgage customers, with the majority of cases (37%) coming from homeowners of properties valued between £250,000 and £399,999.
Despite this, the share of £1m-plus properties among new lifetime mortgage advances remains unchanged at around 4%.
Pure Retirement CEO Paul Carter reflected on the findings: “These latest figures continue to underline the importance of developing later life lending products that meet a diverse range of audience profiles and needs.
“Additionally, they also underline the ways that these products continue to be seen as a viable and attractive means to achieving financial goals from people across the wealth and property value spectrum.”
