Higher-value homes account for one in six lifetime mortgages

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One in six lifetime mortgages completed during the second quarter of 2026 was secured against a property worth at least £700,000, according to more2life.

Analysis of the lender’s new business volumes found that 16% of lifetime mortgages were taken out by owners of homes valued at £700,000 or more, compared with 15% in the same period last year.

Properties worth at least £1 million accounted for 7% of completions during the quarter, suggesting later-life borrowing is attracting homeowners across a wider range of property values.

AVERAGE PROPERTY VALUE RISES

The average property value among new more2life lifetime mortgage customers reached £463,650 in the second quarter, an increase of 3.3% from a year earlier.

This compared with annual UK house price growth of 2.2% reported by Nationwide.

Detached properties accounted for 41% of new lifetime mortgages completed during the quarter, up 3% from the previous three months. Semi-detached homes represented 33% of completions, while terraced properties accounted for 21%.

More2life said the figures strengthened the case for including later-life lending in wider retirement and financial planning discussions. The lender has called for older borrowers to be directed towards the full range of suitable products, including equity release and retirement interest-only mortgages.

Dave Harris, chief executive of more2life, said: “Our latest data shows that lifetime mortgages are being used by a far wider range of homeowners than many people assume.

Dave Harris, more2life
Dave Harris, more2life

“The fact that one in six new plans are now being taken out by owners of properties worth £700,000 or more demonstrates how the market continues to evolve and attract customers from across a broad spectrum of property values and financial circumstances.

“We’re seeing housing wealth play an increasingly important role in retirement planning, including among homeowners who may traditionally not have considered later life lending solutions.

“That makes it even more important that consumers are aware of all the options available to them and are supported by advice and referral processes that consider the full range of later life lending products.

“Greater awareness, stronger referral pathways and more consistent signposting can help ensure customers receive advice that reflects their individual circumstances and objectives, ultimately leading to better-informed decisions and better customer outcomes.

“With the latest Equity Release Council figures showing stable new business volumes year on year, the time is right to explore delivering true market growth – and highlighting the sector’s underlying demographic diversity is a key part of this journey.”

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