Over Half of New Lifetime Mortgages Were Taken Out by Under-70s in 2025 – Pure Retirement

26 March 2026

Analysis by lifetime mortgage lender Pure Retirement has highlighted the underlying trends among new lifetime mortgages in 2025, as part of its latest adviser resource: The Modern Lifetime Mortgage Customer in 2025: A Year in Review

These findings include the fact that the proportion of new lifetime mortgages being taken out by under 70s sat at 55% last year, marking a significant shift from accounting for just 36% of new business only two years prior. Conversely, at the other extreme of the age banding borrowing among over-80s has more than halved since 2023, declining from 15% in 2023 to sit at 7% in 2025.

Property value trends

The lender found that mid-value properties (valued at between £250,000 and £400,000) remain the most common value banding, accounting for just under four in ten (37%) of new plans in 2025 and presenting a consistent picture over the last three years.

Owners of High-value properties (worth at least £700,000), meanwhile continue a very stable pattern seen since 2023, accounting for 10% of new lifetime mortgages.

Usage patterns

The lender has also seen 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 substantial increase 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 then to a low of 22% in 2025.

Holidays (9%), cars (8%) and gifting (7%) round out the 2025 top five most common primary reasons for releasing funds, representing a stable top five albeit with slight shifts – holidays are down from a 2024 peak of 11%, while gifting has declined from the 9% seen in both 2023 and 2024.

Further data points are analysed in the lender’s year in review report, providing a holistic picture of the modern lifetime mortgage customers.

Speaking of the latest findings, Pure’s Head of Distribution Scott Burman says: “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. 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.”