Analysis by lifetime mortgage lender Pure Retirement has found that more than one in four (27%) of new lifetime mortgages in Q2 were taken out for debt and mortgage repayments.
This represented a rise from the 25% seen during Q2 of 2024.
Additionally, home improvements accounted for 23% of the lender’s new business, a 2% increase on a quarterly basis, albeit marking a 2% drop on an annual basis.
Holidays (9%), car purchases (8%) and gifting (8%) rounded out the lender’s top five most common primary reason for taking out a new lifetime mortgage, holding steady on both a quarterly and annual basis.
Lump sum plans were the preferred plan type among new customers in Q2, accounting for 56% of new business.
This was a 6% swing from the even 50/50 split between lump sum and drawdown seen in Q1, and brought it more in line with the 55% lumpsum preference seen this time last year.
58% of new plans were taken out on a joint lives basis in Q2, representing a substantial increase from the 53% seen in Q1.
Among single applicants, 64% of them were female in Q2, a small 1% increase on a quarterly basis but a 3% reduction annually, showing an increase in the proportion of male single applicants compared to this time in 2024.
Paul Carter (pictured), CEO at Pure Retirement, said: “The sustainable growth of the later life lending market is built on the foundation of consumer understanding, and we hope that these figures help those actively engaging in the market learn more the patterns being seen by a leading lifetime mortgage lender.
“It’s positive to see that, according to our figures at least, the lifetime mortgage landscape continues to cater to a wide variety of demographics, which offers hope of a positive year of market growth.”
