Lifetime mortgage lender Pure Retirement has analysed its customer data for Q4, noting a number of shifts on a quarterly and annual basis.
The lender’s usage data found that one in four people (25%) primarily released funds for debt and mortgage repayments – the highest it’s been on both a quarterly and annual basis (both 23%), and overtaking home improvements (23% in Q4 2024) as the most common reason for releasing funds.
One in 10 (10%) of people continued to cite holidays as the main reason for accessing the equity in their home, a proportion that’s remained consistent over the past year.
Gifting and car purchases rounded out the top five most popular reasons, albeit with reductions in proportions.
In Q4 2024, gifting accounted for 7% of primary usage for released funds, down from 10% in Q4 2023, while the proportion of released funds being used for car purchases fell from 9% to 7% on an annual basis.
The lender’s data also pointed to a preference toward drawdown plans, which accounted for 51% of the lender’s new business.
While this remained static on a quarterly basis, it represented a 7% annual swing, where only 44% of new business was on a drawdown basis in Q4 2023.
The proportion of customers taking out lifetime mortgages on a joint lives basis increased, and accounted for 59% of new business in Q4, representing a 3% rise compared to Q3, and a 1% rise on an annual basis.
The amount of single life business coming from male applicants in Q4 2024 was the highest it’s been over the prior 12 months (37%).
While still a minority compared to the 63% coming from female applicants, it nonetheless represented a 7% swing from Q3.
Paul Carter, Pure Retirement CEO, said: “The latest findings continue to demonstrate that the lifetime mortgage customer is constantly evolving, and that as an industry we need to remain proactive in identifying these trends and similarly evolving with them to continue offering effective lifetime mortgage solutions that meet a range of needs.
“It’s going to be a key challenge in 2025, and one which all of us at Pure Retirement are committed to meeting.”
