Recent data indicates a surge in property values for new lifetime mortgage customers.
- In the third quarter of 2024, the average property value for these customers was £423,434.
- This represents a 4% increase compared to the same period last year and a 3.2% rise from the previous quarter.
- The increase is notable against the national market, where property values rose at a slower pace.
- The majority of new lifetime mortgage customers own properties valued between £250,000 and £399,999.
In an examination of property trends, Pure Retirement reported a significant rise in the average property value among new lifetime mortgage customers during the third quarter of 2024, with values hitting £423,434. This marks a 4% increase from the same period last year and a 3.2% uplift from the preceding quarter. The pace of growth is remarkable, given that Nationwide’s house price index shows a national increase of only 2.5% annually and 0.7% quarterly.
This rapid growth in property values for new lifetime mortgage customers contrasts sharply with broader national trends. The figures highlight a nearly fivefold faster appreciation in property values among Pure Retirement’s new clientele compared to the national average over the last quarter.
The data reveals a changing profile among lifetime mortgage customers, with a significant 37% of new cases involving properties valued between £250,000 and £399,999. Despite the overall increase in average property value, the proportion of new lifetime mortgages for properties exceeding £1 million remains steady at around 4%.
Paul Carter, CEO of Pure Retirement, stated that these figures emphasize the importance of developing later life lending products that cater to a diverse array of client profiles and requirements. In his view, such products continue to be attractive for individuals across various wealth and property value spectrums, serving as a viable means to achieve financial objectives.
The property value trends among lifetime mortgage customers demonstrate a dynamic and evolving market landscape.
