The data also revealed that 7% of new lifetime mortgages completed during the quarter were secured against properties worth at least £1m.
More2Life said the findings challenged the perception that lifetime mortgages were primarily used by homeowners with lower-value properties.
When asked about the changing demographics of clients, Steve Dale, equity release adviser & later life lending specialist at MB Associates, said: “The main factor from what I’ve experienced is the use of funds. The lower value properties tend to raise money for income, debt consolidation and home improvements, so necessity borrowing, whereas the higher value ones tend to be more about gifting, and aspirational borrowing.”
As such, Pure Retirement reported that in 2025, the North East had the largest proportion of lending on lower-value properties, with 71% of loans on properties less than £250,000. Furthermore, it found that repaying debts and mortgages were the most common reasons for releasing equity in the North East and North West.
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.
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Will Hale, CEO of Key Advice and Air, said: “The increasing proportion of lifetime mortgages being taken out against higher-value properties demonstrates that releasing housing wealth is now a mainstream financial planning consideration for a much broader range of homeowners than many people might expect.”
Detached and semi-detached homes lead lifetime mortgage demand
More than four in 10, 41%, of new lifetime mortgages completed in Q2 were taken out by owners of detached properties, a 3% rise 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.
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. ”