The proportion of new business coming from high-value homes (i.e. over £850,000) almost doubled in Q1 when compared to the levels seen in Q4 of last year, analysis from lifetime mortgage lender Pure Retirement has shown.
The lender found that over the last quarter owners of high-value homes made up 9% of total new business – an increase from the 5% seen at the end of 2024.
The lender also found that the bulk of activity continued to come from owners of homes at under £400,000, which represented 64% of new business in Q1 – a 3% annual decrease, though a slight drop from the 65% seen in Q4 2024.
The lender saw owners of properties in the £250,000 to £399,000 bracket continue to provide the greatest proportion of new business, which sat at 34% over the first quarter of the year.
The average property value among new lifetime mortgage customers continues to sit at over £400,000, with the exact figure – £405,310 – marking a 0.5% annual increase.
Paul Carter, CEO of Pure Retirement, said: “The fact that the highest proportion of business, and the highest levels of growth, are coming from the extremes of the property value spectrum continue to demonstrate how lifetime mortgages cater to a wide variety of demographics.
“Additionally, it highlights how ongoing product innovation such as interest servicing continues to provide greater choice for consumers exploring later life lending, and is providing effective solutions that cross demographic boundaries.”
