New data highlights the growing appeal of later life lending products
Lifetime mortgage lender Pure Retirement has reported a notable increase in property values among new customers in the third quarter, reflecting a broader range of homeowners accessing later life lending products.
According to Pure Retirement’s data, the average property value for new lifetime mortgage customers reached £423,434 in Q3 2024. This marks a 4% annual increase from £406,805 in the same period last year, and a 3.2% rise from £409,811 in Q2. The lender noted that this quarterly average is among the highest recorded in a single quarter.
The rise in property values among lifetime mortgage customers outpaced national trends. While Nationwide’s House Price Index showed a 2.5% annual and 0.7% quarterly increase in house prices, Pure Retirement’s figures indicate that property values for their customers have grown nearly five times faster than the national average over the past quarter.
Properties valued between £250,000 and £399,999 made up the largest share of new lifetime mortgage plans, accounting for 37% of cases. Homes worth over £1 million represented around 4% of initial advances, a share that has remained steady.
The Equity Release Council also recently reported that new equity release plans and total lending both grew in the third quarter of 2024, marking the first consecutive quarter of growth in two years.
“These latest figures continue to underline the importance of developing later life lending products that meet a diverse range of audience profiles and needs,” said Paul Carter (pictured), chief executive of Pure Retirement. “Additionally, they also underline the ways that these products continue to be seen as a viable and attractive means to achieving financial goals from people across the wealth and property value spectrum.”
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