Under-70s now represent 59% of all new initial equity release advance activity, compared to 43% at the same point in 2023, research from Pure Retirement has revealed.
Pure Retirement analysed its own data across Q3 of this year, comparing the findings both quarter-on-quarter and year-on-year.
The proportion of business from over-75s reduced to 15%, from 31% a year ago, and 23% in Q2 of this year.
The average new lifetime mortgage customer age also got younger, and currently sits at 68.
For the first time, there was a preference for drawdown over lump sum plans among new customers in Q3.
Over the last quarter, 51% of new customers chose this plan – in contrast to a year ago, where only 41% of customers preferred drawdown plans, and Q2 of this year, where 46% chose drawdown plans.
Among single life applicants, the proportion of women continued to grow, now at 70%.
This contrasted with the 64% at the same point a year ago, and 67% in Q2.
Overall loan usage remained static on both a quarterly and yearly basis, both in terms of the top five most common uses, and the proportion of business they represent.
Lump sum customers were 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 – a 4% rise year-on-year.
Conversely, 15% of drawdown customers released funds for holidays – consistent over the past year – while this particular use has not been seen in the top five uses among lump sum customers at all in 2024.
Paul Carter, CEO of Pure Retirement, said: “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 has continue to serve throughout 2024, providing exciting opportunities for the market going forward.”
