More than half of new lifetime mortgages arranged last year were taken out by borrowers aged under 70, as debt repayment continued to overtake discretionary spending as the main reason for releasing housing equity.
Analysis from Pure Retirement found that 55% of new lifetime mortgages in 2025 were taken out by under-70s, up from 36% two years earlier.
At the other end of the age range, borrowing among over-80s fell from 15% of new business in 2023 to 7% last year, according to the lender’s latest adviser report, The Modern Lifetime Mortgage Customer in 2025: A Year in Review.
The data also points to a market still dominated by mainstream property values. Homes worth between £250,000 and £400,000 accounted for 37% of new plans in 2025, broadly unchanged over the past three years.
High-value homes also showed little movement. Pure Retirement said properties worth at least £700,000 made up 10% of new lifetime mortgages, continuing a stable pattern seen since 2023.
In terms of borrower motivations, repaying existing debts and mortgages became more prominent. That category accounted for 28% of new lifetime mortgages in 2025, up from 22% in 2023 and 24% in 2024.
As a result, home improvements slipped back as the primary reason for taking out a plan, falling from 25% in 2023 to 24% in 2024 and 22% last year.
Holidays, cars and gifting completed the top five uses for released funds in 2025, accounting for 9%, 8% and 7% respectively. While the ranking remained broadly unchanged, Pure Retirement said holidays were down from 11% in 2024, while gifting eased from 9% in both 2023 and 2024.
Scott Burman (pictured), head of distribution at Pure Retirement, said: “It’s impossible to ignore the fact that current lending volumes within the lifetime mortgage space have been driven by needs-based borrowing rather than releasing equity for more discretionary reasons.
“This is further reflected by upticks in activity among younger borrowers, but is somewhat countered by stable activity from owners of £1m+ properties, which continues to account for 10% of new lifetime mortgages.
“Ultimately people, irrespective of age or property value, remain comfortable in releasing equity from their homes to achieve their financial goals once advice has established that this is the right solution and continues to improve the lives of people across the demographic spectrum.
“We look forward to continuing working with advisers to help deliver best outcomes for their clients, and providing solutions that work for Britain’s over-55s.”
Pure Retirement said the wider report examines additional data points aimed at building a broader picture of the modern lifetime mortgage customer.
