Research from lifetime mortgage lender Pure Retirement, which is released quarterly, notes that this is a rise from 21% in the same period last year and up from 25% in Q4 last year.
Lifetime mortgages for home improvements have stayed static on a quarterly basis, accounting for 22% of new customers. This is a slight drop from 25% in the prior year.
Holidays made up 9%, gifting 8% and car purchases 7% as the most common reasons for borrowing lifetime mortgages.
The report found that most new business was on a joint lives basis, making up 57% of all new business. This is one of the lowest levels on a quarterly and annual basis, Pure Retirement said.
Lump sum and drawdown plans remain evenly split, the report stated.
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Female single applicants are at the highest level in a year, at 68% of new lifetime mortgage customers. This is up from 63% in Q4 and 66% in Q1 last year.
On an annual basis, the proportion of single applicants fell to 29%, a drop of 9% year-on-year, while the proportion of unmarried single applicants has jumped from 21% last year to 35% currently.
Paul Carter, Pure Retirement’s CEO, said: “The latest findings continue to demonstrate the evolving customer profile within the later life lending space, and the way it’s proving an effective solution for a diverse range of demographic profiles.
“We remain hopeful that this will form the basis of the market’s recent onward trajectory and look forward to continuing to innovate and providing support to provide advisers with the tools they need to deliver best outcomes for their clients.”
