Pure Retirement Releases Insights on the Modern Lifetime Mortgage Customer in 2025

Pure Retirement has published a new report titled “The Modern Lifetime Mortgage Customer in 2025: A Year in Review”, highlighting how borrower behaviour continues to evolve across the equity release market.

The findings reveal a shift towards younger customers, changing borrowing motivations, and continued stability in property values.

Younger Borrowers Driving Market Growth
According to the report, the lifetime mortgage market is increasingly being driven by younger retirees.

More than half (55%) of new lifetime mortgages in 2025 were taken out by borrowers under the age of 70, a notable rise from just 36% two years earlier.

At the same time, borrowing among over-80s has declined significantly, falling from 15% in 2023 to just 7% in 2025.

This shift suggests a growing trend towards earlier, needs-based financial planning in later life.

Property Values Show Consistency
While borrower demographics are changing, property values associated with lifetime mortgages have remained relatively stable.

Lower-value properties (under £250,000) accounted for 29.7% of new lending in 2025, a slight increase from previous years.

Mid-range homes, valued between £250,000 and £400,000, continue to dominate, making up 37% of new plans.

Meanwhile, high-value properties (£700,000 and above) consistently account for around 10% of the market.

Joint Applications Remain the Majority
The report also highlights that joint applications continue to be the most common approach.

In 2025, 57% of lifetime mortgages were taken out on a joint basis, reflecting the role of equity release in supporting couples’ retirement planning.

Changing Profile of Single Applicants
Among single applicants, there have been notable changes in marital status trends.

Widows now make up 32% of single applications, down from 41% in 2023.

In contrast, unmarried applicants have increased significantly, rising from 22% to 31% over the same period.

Divorcees represent around 32% of single applicants, showing a gradual upward trend.

The data also shows that women account for 64% of single applicants.

Debt Repayment Becomes a Key Driver
One of the most significant findings relates to how customers are using lifetime mortgages.

Repaying existing debts and mortgages is now the most common reason, accounting for 28% of new plans in 2025.

This marks a steady increase from 22% in 2023 and 24% in 2024.

By comparison, the proportion of borrowers using funds for home improvements has declined, falling to 22% in 2025.

Other uses remain consistent, including holidays (9%), cars (8%), and gifting (7%).

Lump Sum Remains the Preferred Option
The report also notes that 54% of lifetime mortgages in 2025 were taken as a lump sum.

This suggests many borrowers continue to favour immediate access to funds, despite the availability of more flexible drawdown options.

A Market Shaped by Needs-Based Borrowing
Overall, Pure Retirement’s findings point to a market increasingly shaped by practical financial needs rather than discretionary spending.

Younger borrowers, rising debt repayment use, and stable property values all contribute to a clearer picture of how lifetime mortgages are being used in 2025.

Final Thoughts
The report reinforces the idea that lifetime mortgages are becoming a more mainstream financial tool, used earlier and for more varied purposes.

As customer profiles continue to evolve, these insights provide a valuable snapshot of the modern equity release market and where it may be heading next.