Owners of high-value properties, which were those worth at least £700,000, continued a stable pattern seen since 2023, accounting for 10% of new lifetime mortgages.

The proportion of new lifetime mortgages being taken out by under-70s sat at 55% last year, a figure up from 36% of new business just two years prior, new research by Pure Retirement has found.

The lender’s findings also showed that at the other end of the age bracket, borrowing among over-80s has more than halved since 2023, declining from 15% in 2023 to sit at 7% in 2025.

Pure Retirement published the findings in its latest adviser resource, The Modern Lifetime Mortgage Customer in 2025: A Year in Review, which highlighted underlying trends among new lifetime mortgages last year.

The lender reported that mid-value properties, those valued between £250,000 and £400,000, remained the most common value banding, accounting for 37% of new plans in 2025 and presenting a consistent picture over the last three years.

Pure Retirement also reported an uptick in new lifetime mortgages primarily being taken out to repay debts and mortgages, accounting for 28% of new lifetime mortgages in 2025 and representing a rise from the 22% seen in 2023, and 24% seen in 2024.

As a result, the proportion of people listing home improvements as the main reason for taking out a lifetime mortgage has reduced over the same timeframe, declining from a 25% high in 2023, to 24% in 2024 and to 22% in 2025.

Pure Retirement’s head of distribution, Scott Burman, said: “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.

“This is further reflected by upticks in activity among younger borrowers but is somewhat countered by stable activity from owners of £1m+ 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.”

Source: Money Age