Analysis by lifetime mortgage lender Pure Retirement has found that the proportion of people listing home improvements as the primary reason for releasing equity from their homes is the highest it’s been for 12 months. The usage figures for Q4 showed that one in four (25%) of people in Q4 2025 took out a lifetime mortgage to improve their homes, representing a 2% annual increase, and a 4% rise compared to Q3 2025.
However, debt and mortgage repayments continue to be the most common primary reason for taking out a lifetime mortgage - albeit with the 26% proportion seen in Q4 equating to a 4% decrease compared to Q3. Holidays, cars and gifting continue to round out the top five most common usage reasons, accounting for 7-10% apiece.
Other key demographic shifts
The lender also noted a comprehensive shift in age profiles, with over-70s accounting for 24% of new business in Q4 2025, representing a 6% increase on both a quarterly and annual basis.
The lender saw a noticeable change in plan type preferences on a quarterly basis too. In Q3 63% of new customers took out a new lifetime mortgage on a lump sum basis, while Q4 saw it revert to a near-even split, with 51% of new lifetime mortgages being taken out on a lump sum basis – comparable to the figures seen in Q4 2024.
Additionally, the gender split among single life applicants saw the proportion of new female customers at the highest point seen over the last 12 months, sitting at 65% - this equated to a 2% annual increase, and a 7% uplift compared to Q3 2025.
Speaking of the latest findings, Chief Operating Officer Simon Hayton says: “The shifts in customer profiles we’ve seen in a relatively short period of time shows the dynamic and ever-changing nature of the people benefitting from lifetime mortgages as a tool to reach their financial goals in later life. With noticeable movement on a number of demographic markers, this data shows the importance of keeping on top of emerging trends and being able to respond to them in an agile fashion to meet consumer needs. In addition to using data to shape our own offering, we hope that sharing these findings will also aid in ensuring the later life sector remains a relevant and consumer-focused part of the financial services landscape.”
