Home improvements were the most prominent driver of lifetime mortgage borrowing for the past 12 months, with activity peaking in the final quarter of 2025, analysis from Pure Retirement has found.
Data from Q4 2025 revealed that one in four (25%) customers took out a lifetime mortgage primarily to fund home improvements.
This represents a 2% increase year-on-year and a 4% rise compared with Q3 2025, marking the highest proportion recorded over the past year.
Despite this shift, repaying existing debt and mortgages remains the most common primary reason for releasing equity.
However, the share of customers citing this reason fell to 26% in Q4, down 4% on the previous quarter.
Other popular uses of released funds remained consistent, with holidays, cars and gifting each accounting for between 7% and 10% of cases.
Pure Retirement’s analysis also highlighted notable demographic movements.
Customers aged over 70 accounted for 24% of new business in Q4 2025, reflecting a 6% increase on both a quarterly and annual basis.
Preferences around product structure also shifted.
While 63% of new lifetime mortgages in Q3 were taken on a lump sum basis, Q4 saw this fall back to a more balanced position, with 51% of new plans structured as lump sums.
In addition, the proportion of single-life female applicants reached its highest level in the past 12 months.
Women accounted for 65% of new single-life customers in Q4, representing a 2% increase year-on-year and a 7% rise compared with Q3 2025.
Simon Hayton (pictured), chief operating officer at Pure Retirement, said: “The shifts in customer profiles we’ve seen in a relatively short period of time shows the dynamic and ever-changing nature of the people benefitting from lifetime mortgages as a tool to reach their financial goals in later life.
“With noticeable movement on a number of demographic markers, this data shows the importance of keeping on top of emerging trends and being able to respond to them in an agile fashion to meet consumer needs.
“In addition to using data to shape our own offering, we hope that sharing these findings will also aid in ensuring the later life sector remains a relevant and consumer-focused part of the financial services landscape.”
