New more2life data suggests lifetime mortgages are increasingly being used by wealthier homeowners, reinforcing the need for consumers to be signposted to the full range of later life lending options.
Analysis of more2life's new business volumes shows that 16% of lifetime mortgages completed in Q2 2026 were taken out by homeowners with properties valued at £700,000 or more, up from 15% during the same period last year.
The data also reveals that 7% of new lifetime mortgages completed during the quarter were secured against properties worth at least £1m, highlighting the growing use of later life lending solutions among owners of higher-value homes.
The findings challenge the perception that lifetime mortgages are primarily used by homeowners with lower-value properties and suggest the market is continuing to broaden as more consumers incorporate property wealth into their retirement and later life financial planning.
Growing Housing Wealth Among Later Life Borrowers
According to more2life's data, the average property value among new lifetime mortgage customers increased to £463,650 in Q2 2026, up 3.3% year-on-year.
This compares with the latest annual UK house price growth figure of 2.2% reported by Nationwide, indicating that many later life lending customers continue to hold substantial levels of housing wealth.
The figures also suggest that lifetime mortgages are increasingly being considered by homeowners across a wide range of property values, circumstances and financial objectives.
Detached Properties Continue to Dominate
More than four in 10 (41%) new lifetime mortgages completed during Q2 were taken out by owners of detached properties, an increase of 3% on the previous quarter.
Homeowners living in semi-detached properties accounted for a further 33% of new plans completed, while those living in terraced homes represented 21% of business written during the quarter.
The distribution highlights the breadth of property types represented within the lifetime mortgage market and reflects the continued mainstreaming of later life lending solutions.
Implications for Advisers and Customer Outcomes
more2life believes the findings underline the importance of ensuring later life lending forms part of broader retirement and financial planning discussions.
As customer demographics continue to evolve, the lender argues that advisers and consumers should have access to the full spectrum of later life lending solutions, including equity release, retirement interest-only mortgages and other appropriate borrowing options.
The lender has previously called for older borrowers to be signposted to all relevant later life lending products, helping ensure recommendations are based on a comprehensive assessment of available solutions and ultimately supporting better customer outcomes.
Dave Harris, CEO of more2life, said:
"Our latest data shows that lifetime mortgages are being used by a far wider range of homeowners than many people assume. The fact that one in six new plans are now being taken out by owners of properties worth £700,000 or more demonstrates how the market continues to evolve and attract customers from across a broad spectrum of property values and financial circumstances.
"We're seeing housing wealth play an increasingly important role in retirement planning, including among homeowners who may traditionally not have considered later life lending solutions. That makes it even more important that consumers are aware of all the options available to them and are supported by advice and referral processes that consider the full range of later life lending products.
"Greater awareness, stronger referral pathways and more consistent signposting can help ensure customers receive advice that reflects their individual circumstances and objectives, ultimately leading to better-informed decisions and better customer outcomes.
With the latest Equity Release Council figures showing stable new business volumes year on year, the time is right to explore delivering true market growth – and highlighting the sector’s underlying demographic diversity is a key part of this journey. "
