The latest data reveals a significant rise in property values for new lifetime mortgage customers, suggesting a changing market landscape.
- Average property value among new lifetime mortgage customers has increased by 4% compared to the same quarter last year.
- This increase outpaces the national average, which saw a 2.5% annual rise in house prices, highlighting the growing appeal of lifetime mortgages.
- The majority of lifetime mortgage cases involve properties valued at £250,000 to £399,999, indicating a broadening customer profile.
- Despite the general rise in value, properties over £1m still only account for 4% of new lifetime mortgage advances.
Recent findings from Pure Retirement illustrate a marked rise in the property values among new lifetime mortgage customers. In the third quarter of 2024, the average property value reached £423,434. This figure not only signifies a 4% increase compared to the same period last year but also reflects a notable 3.2% rise from the previous quarter, where values stood at £409,811.
This significant rise in property values contrasts sharply with the broader national market trends. Data from Nationwide’s house price index indicates a more modest increase in national property values, with a 2.5% annual rise and a 0.7% quarterly growth. This divergence underscores the accelerated growth in property values for lifetime mortgage customers, a trend that is nearly five times the national rate over the last quarter.
An analysis of Pure Retirement’s data reveals that a substantial portion of new lifetime mortgage cases, specifically 37%, involve properties valued between £250,000 and £399,999. This demonstrates a shift in the customer base, which is increasingly drawn from moderate property value brackets. Interestingly, despite the overall upward trend in property values, the percentage of properties valued over £1m remains stable at about 4%.
Paul Carter, CEO of Pure Retirement, commented on these findings, emphasising the importance of developing lifetime lending products that cater to a diverse audience. He highlighted that such products are becoming increasingly recognised as viable options for achieving financial goals across various wealth and property value segments.
The growing property values among lifetime mortgage customers signal a shift in market dynamics, underscoring the evolving profiles and needs of these customers.
