Average property values among new lifetime mortgage customers saw an annual growth of 25% in Q4, analysis from Pure Retirement has revealed.
The lender saw an average property value of £400,900 in Q4.
While this was a reduction from the mid-year peak of over £423,000, owing to the traditional Q4 seasonal lull in overall market activity, it represented a 25% uplift in average house value compared to the £391,300 seen in Q4 2023.
Around four in 10 (39%) of new business came from properties in the £250,000 to £399,000 value range, up from 37% in Q3.
Additionally, just under one in four (24%) of new plans came from owners of properties valued at between £400,000 and £699,000 – however, this represented a decrease from the 27% seen in Q3 and the 25% seen in Q4 of 2023.
Conversely, the proportion of new lifetime mortgages being taken out from owners of properties valued at between £700,000 and £999,000 was the highest it’s been at any point over the preceding 12 months, accounting for 7% of the lender’s new business in Q4 2024 (compared to 5% in Q3 and 6% in Q4 2023).
Paul Carter, Pure Retirement CEO, said: “The latest quarterly figures demonstrate the variety of customers that lifetime mortgages continue to serve.
“Irrespective of the value of their property, many people continue to see lifetime mortgages as an effective route to reaching their financial goals, and we look forward to continue offering a range of lifetime mortgage solutions suitable for a range of circumstances.”
