Needs-led borrowing grows as lifetime mortgage borrowers skew younger
Borrowers aged under 70 made up 55% of new lifetime mortgages in 2025, a significant increase from 36% just two years prior, according to data analysis by Pure Retirement.
The lifetime mortgage lender also reported a sharp fall in borrowing among over-80s, down to 7% in 2025 from 15% in 2023.
Pure Retirement’s review also pointed to a shift towards needs-based borrowing. It said repaying debts and existing mortgages was the primary reason for 28% of new lifetime mortgages in 2025, up from 24% in 2024 and 22% in 2023.
Mid-value homes, defined as those worth between £250,000 and £400,000, accounted for 37% of new plans in 2025, which the lender said has remained broadly steady over the past three years.
High-value properties, described as those worth at least £700,000, represented 10% of new lifetime mortgages in 2025, continuing what Pure Retirement called a stable pattern since 2023.
The share of customers listing home improvements as the main reason for taking out a lifetime mortgage fell to 22% in 2025, from 24% in 2024 and 25% in 2023.
The lender reported that the remaining top five primary reasons in 2025 were holidays (9%), cars (8%) and gifting (7%). Holidays eased from an 11% peak in 2024, while gifting declined from 9% in both 2023 and 2024.
“It’s impossible to ignore the fact that current lending volumes within the lifetime mortgage space have been driven by needs-based borrowing rather than releasing equity for more discretionary reasons,” said Scott Burman (pictured right), head of distribution at Pure Retirement.
“This is further reflected by upticks in activity among younger borrowers, but is somewhat countered by stable activity from owners of £1 million-plus properties, which continues to account for 10% of new lifetime mortgages.
“Ultimately people, irrespective of age or property value, remain comfortable in releasing equity from their homes to achieve their financial goals once advice has established that this is the right solution and continues to improve the lives of people across the demographic spectrum. We look forward to continuing working with advisers to help deliver best outcomes for their clients, and providing solutions that work for Britain’s over-55s.”
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