New study paints a picture of the average equity release customer
![Equity release customers 'getting younger'](https://cdn-res.keymedia.com/cdn-cgi/image/w=1000,h=600,f=auto/https://cdn-res.keymedia.com/cms/images/us/077/0343_638573529075057880.png)
Lifetime mortgage lender Pure Retirement has analysed demographic trends in the first half of the year to profile the average equity release customer. The findings indicate that the average age of applicants is now 69, down from 74 in 2018, reflecting a trend towards younger customers.
The analysis also revealed a 3% year-on-year increase in average house prices among applicants. The average property value in the first half of the year was just under £416,000, the highest since 2021. While 62% of cases involved properties valued under £400,000, 26% came from homes worth between £400,000 and £700,000.
Lump sum plans remain the preferred choice of equity release customers, accounting for 53% of completed cases. However, this represents the lowest share in the lender’s history, down from a peak of 65% in 2021, indicating a growing interest in drawdown plans.
The data also showed that 58% of completed cases in the first half of 2024 were on a joint lives basis. Among single life applicants, 67% were female, a 3% increase from 2023, aligning with the proportions seen in 2021.
“I don’t think the importance of understanding customers can be understated if we’re to continue to deliver best outcomes for those exploring lifetime mortgages as a potential avenue to achieve their financial goals,” said Paul Carter (pictured), chief executive of Pure Retirement.
“These latest figures continue to show the diverse range of profiles that modern equity release products are appealing to, providing a strong foundation on which to continue to build over the rest of the year and beyond.”
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