Nearly three in 10 (27%) of new lifetime mortgage customers listed repaying debts and mortgages as the primary reason for borrowing in Q1 2025, research by Pure Retirement found.
The latest figures represented an uptick from 21% in Q1 2024, and from 25% in in Q4 of last year.
Home improvements remained 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%) rounded out the top five most common reasons for borrowing, shifting little on both a quarterly and annual basis.
The majority of new business remained on a joint lives basis, accounting for 57% of all new business in Q1.
Customers were 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 female single applicants were at the highest level seen in a year, representing nearly seven in 10 (68%).
This has risen from the 63% seen in Q4, and the 66% seen in Q1 of last year.
Additionally on an annual basis the proportion of single applicants who are widowed reduced by 9% annually, and sat at 29%.
The proportion of single applicants who are unmarried rose from 21% in Q1 last year, to 35% this year.
Paul Carter, CEO at Pure, said: “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.”
