Average age of equity release customers falls to 68

Latest data shows a lower average age for equity release and increasing number of single female applicants

Written in line with our editorial policy.

The average age of new lifetime mortgage customers has fallen to 68 according to the latest research, marking a continuing trend towards younger borrowers entering the market.

New data from equity release provider Pure Retirement reveals that customers under 70 now make up 59% of all new initial advance activity. This is a significant increase from 43% at the same point in 2023 and 50% in the second quarter of 2024.

Meanwhile, the proportion of applications coming from customers over 75 has fallen to 15%, a drop from 31% a year ago.

Shift towards drawdown plans

The data also reveals a trend in terms of the type of plan taken out. For the first time in their research, drawdown plans have overtaken lump sum plans as the preferred choice among new customers. In the third quarter of 2024, 51% of customers opted for drawdown plans, compared to 41% a year earlier.

A drawdown lifetime mortgage lets homeowners take an initial withdrawal, followed by further funds from a pre-agreed amount when you need them. This could be ideal for smaller financial goals such as topping up your income, making a series of home repairs or booking holidays.

Lump sum plans, however, remain a popular option for meeting immediate financial needs. Among lump sum customers, 31% used their funds for essential needs – a figure twice as high as that seen among drawdown customers, and a 4% increase year-on-year. 

Conversely, 15% of drawdown customers used their released funds for holidays, a motive that is absent from the top uses for lump sum customers in 2024.

Growing proportion of female applicants

Interestingly the data also reveals that the share of single female applicants continues to grow, now accounting for 70% of single life cases. This represents an increase from 64% at the same time last year and 67% in Q2 2024.

Paul Carter, CEO of Pure Retirement, highlighted the importance of understanding customer demographics and preferences to deliver tailored solutions: “These latest figures continue to underline the importance of effectively using data to fully understand customers so that in turn we, as a sector, can continue to deliver best outcomes for them.

“The increasing levels of activity among younger and single female applicants, as well as the divergent usage patterns among lump sum and drawdown customers, highlight the diverse audience lifetime mortgages will continue to serve throughout 2024.”

Source

The average age of new lifetime mortgage customers falls to 68: Average age of equity release customer now at 68: Pure Retirement. Mortgage Finance Gazette. Accessed 19 December 2024.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn