Research shows a significant rise in property value among lifetime mortgage customers.
- Property values for new lifetime mortgage customers increased by £122,000 from 2018 to mid-2024.
- The average value rose from £293,680 to £415,746, marking a notable 42% surge.
- The research highlights demographic changes and key factors influencing current customers.
- Data-driven insights aim to reshape understanding of lifetime mortgage profiles.
Pure Retirement’s recent study reveals that the property value for new lifetime mortgage customers has seen a significant increase, reaching an average of £415,746 by the middle of 2024, compared to £293,680 in 2018. This represents a 42% rise over the given period, underscoring the growing market trends associated with lifetime mortgage customers.
The research, titled ‘The Evolving Lifetime Mortgage Customer: an exploration of changing equity release demographics’, focuses on emerging demographic patterns among lifetime mortgage customers. It aims to provide deeper insights into the current customer profile by examining factors such as age, property value, marital status, plan type, application type, and gender distribution, particularly among single applicants.
According to the findings, those owning properties valued over £850,000 show the highest interest in drawdown plans. Furthermore, an interesting demographic note is that nearly 67% of single applicants are females, pointing towards a trend in gender distribution within this market segment.
Gareth Ware, the report’s author and communications manager for Pure Retirement, emphasised the study’s intent to not only map out how lifetime mortgage customer profiles are evolving but also to challenge existing misconceptions. “We’re pleased to deliver this new research piece to the wider market, helping to highlight how the profile of a lifetime mortgage customer has evolved over a relatively short period of time,” Ware commented.
Additionally, the report stresses the importance of leveraging data effectively to enhance understanding and offer suitable product solutions. This approach aims to improve consumer outcomes by tailoring options to meet the nuanced needs of the demographic.
The study indicates a substantial change in lifetime mortgage customer demographics and property values, highlighting the need for ongoing research to adapt to market shifts.
