According to research from Pure Retirement, home improvements made up 40 per cent of cash releases, which is line with Q2 2023 and Q3 2022 figures at 41 per cent.
This was followed by holidays at 13 per cent, which is a slight decrease from 16 per cent in Q3 last year and 15 per cent in the prior period.
Cash releases were used for cars by nine per cent of those borrowers, in line with 10 per cent in Q3 2022 and nine per cent in Q2 2023.
Living expenses came to nine per cent, up from five per cent last year but down from 11 per cent in the prior quarter.
Gifting made up six per cent of cash releases, which is in line with prior quarters.
On the further advance side, 27 per cent were used for home improvements, down from 30 per cent in the same period last year.
Around 13 per cent of further advances were used for emergency funds, slightly down from 15 per cent in the Q3 last year.
Holidays made up 12 per cent, gifting 10 per cent and cars eight per cent.
Pure Retirement’s head of distribution Scott Burman said: “Given the recent economic landscape, it’s perhaps unsurprising to see more needs-based borrowing taking place among those accessing cash releases or requesting additional funds.
“However, the mixed picture being presented alongside more aspirational means points to the diverse customer profile that underlines the market’s development in recent years.”
He continued: “It also points to the need for a holistic approach when it comes to product development to ensure lifetime mortgages continue to be a potential retirement avenue for as many people as possible, and we’re looking forward to continuing our commitment to that into 2024 and beyond.”