Lifetime mortgage lender Pure Retirement has released insights into demographic trends for the first half of 2024, shedding light on the evolving profile of the average equity release customer.
The analysis found that the average age of applicants in the first half of the year was 69 years old, a continuation of the trend towards younger customers within the industry.
This marks a significant decrease from the average age of 74 years old among Pure Retirement’s customers in 2018.
Additionally, the lender reported a 3% year-on-year increase in average house prices among applicants, with the average property value for H1 standing just under £416,000 – the highest since 2021.
Notably, 62% of completed cases were from owners of properties valued under £400,000, while 26% came from homes valued between £400,000 and £700,000.
Lump sum plans remain the most popular product among the lender’s customers, accounting for 53% of completed cases in the first half of the year.
However, this represents the lowest share in the lender’s data history, which peaked at 65% in 2021, indicating a growing interest in the flexibility of drawdown plans.
The lender also observed that 58% of completed cases in the first half of 2024 were on a joint lives basis. Among single life applicants, 67% were female, a 3% increase compared to 2023, aligning with the proportions seen in 2021.
Pure Retirement CEO Paul Carter commented on these findings: “I don’t think the importance of understanding customers can be understated if we’re to continue to deliver best outcomes for those exploring lifetime mortgages as a potential avenue to achieve their financial goals.
“These latest figures continue to show the diverse range of profiles that modern equity release products are appealing to, providing a strong foundation on which to continue to build over the rest of the year and beyond.”
