A growing number of older homeowners are turning to lifetime mortgages to manage financial liabilities, with new figures from Pure Retirement showing that 27% of new customers in the first quarter of 2025 used the product primarily to repay existing debts or mortgages.
The trend marks a notable increase from 21% a year earlier and up from 25% in the final quarter of 2024.
The findings suggest a shift in priorities among later-life borrowers, with financial consolidation overtaking home improvements as the leading reason for drawing on equity release. While 22% of new customers in Q1 2025 cited home improvements as their primary motivation — unchanged from the previous quarter — this figure is down from 25% in the same period last year.
Spending on holidays (9%), gifting to family or friends (8%), and car purchases (7%) remained stable on both a quarterly and annual basis, rounding out the five most common reasons for lifetime mortgage borrowing.
The demographic data highlights further evolution in the market. Joint lives business remains dominant, representing 57% of all new plans, but this marks the lowest level seen in the past year. Meanwhile, demand has become more evenly split between lump sum and drawdown plans, reversing the slight drawdown preference of 51% seen in Q4 2024.
Female single applicants represented a growing share of new business, accounting for 68% of such applications — the highest proportion recorded in the past year. This is up from 63% in the final quarter of last year and 66% in Q1 2024.
There has also been a shift in the marital status of single applicants. The proportion who are widowed has fallen by 9% year-on-year, to 29%, while those who are unmarried now make up 35% of single applicants, up from 21% a year ago.
Paul Carter, Pure Retirement’s chief executive, said: “The latest findings continue to demonstrate the evolving customer profile within the later life lending space, and the way its proving an effective solution for a diverse range of demographic profiles.
“We remain hopeful that this will form the basis of the market’s recent onward trajectory, and look forward to continuing to innovate and providing support to provide advisers with the tools they need to deliver best outcomes for their clients.”
