Analysis from lifetime mortgage lender Pure Retirement shows that home improvements were the primary reason for equity release for one in four customers in the final quarter of 2025, the highest proportion recorded over the past 12 months.
The Q4 figures indicate that 25% of customers took out a lifetime mortgage to fund home improvements, marking a 2% increase year-on-year and a 4% rise compared with Q3 2025.
Despite the shift, paying down debt and existing mortgage commitments remained the most common single reason for taking out a lifetime mortgage. This accounted for 26% of cases in Q4, although this represented a 4% decline on the previous quarter.
Holidays, car purchases and gifting continued to feature among the top five reasons for equity release, each accounting for between 7% and 10% of usage.
OTHER KEY DEMOGRAPHIC SHIFTS
The data also highlighted notable changes in customer demographics. Over-70s accounted for 24% of new business in Q4 2025, representing a 6% increase on both a quarterly and annual basis.
There was also a shift in plan preferences. While 63% of new customers opted for a lump sum lifetime mortgage in Q3, this fell back to a near-even split in Q4, with 51% choosing a lump sum product. This mirrors levels last seen in Q4 2024.
Among single life applicants, the proportion of female customers reached its highest level of the past year. Women accounted for 65% of new single life business in Q4, reflecting a 2% annual increase and a 7% uplift compared with Q3 2025.
EMERGING TRENDS
Simon Hayton, 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.”
