The average age of equity release borrowers has fallen by five years since 2018 to 69 years old, as revealed by analysis of later life demographics during the first six months of the year.
Lump sum plans, meanwhile, continued to be the most popular form of equity release, representing 53% of all completed cases.
The findings emerged following lender Pure Retirement’s examination of the trends emerging among its applications made during H1.
Although lump sum plans remained the dominant style of lifetime mortgage, at 53% they were the lowest share recorded by the lender and down from their 65% peak in 2021.
The lender also saw a 3% year-on-year increase in average house prices among applicants, with the H1 average of just under £416,000 representing its highest average property value since 2021.
While 62% of completed cases came from owners of properties of under £400,000, an additional 26% came from those who reside in homes valued at between £400,000 and £700,000.
Analysis carried out by Pure Retirement earlier this month revealed that taking out equity release to repay a mortgage or consolidate debts has risen in popularity, putting it on an equal footing with home improvements.
A quarter of its borrowers released equity to improve their home, while the same proportion used plans to repay their debts.
The proportion of borrowers using equity release to repay debts has risen by 4% quarter-on-quarter and 3% since Q2 last year.
The lender found that 58% of completed cases over the first half of 2024 have been on a joint lives basis, while among single life applicants, 67% are female.
Paul Carter, Pure Retirement’s chief executive, said: “I don’t think the importance of understanding customers can be understated if we’re to continue to deliver best outcomes for those exploring lifetime mortgages as a potential avenue to achieve their financial goals. These latest figures continue to show the diverse range of profiles that modern equity release products are appealing to, providing a strong foundation on which to continue to build over the rest of the year and beyond.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Equity release average age has fallen by five years since 2018
