The proportion of initial advances being taken by those younger than 70 years old is also up on last quarter, when 50% of new borrowing was taken out by this age group, according to analysis by lender Pure Retirement.
Initial advances drawn by older borrowers – those aged over 75 – has fallen from 31% to 15% year-on-year.
The average age of a lifetime mortgage borrower now sits at 68 years old.
Drawdown plans rise in popularity
The lender also found that, for the first time, there is a preference for drawdown over lump sum plans among new customers in Q3.
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Over the last quarter, 51% of borrowers chose a drawdown plan, compared to 41% of new customers last year and 46% last quarter.
Among single life applicants, the proportion of women continues to grow, rising from 64% to 70% year-on-year.
Overall loan usage has remained static on a quarter-on-quarter and year-on-year basis, both in terms of the top five most common uses and the proportion of business they represent.
Needs-based borrowing
Lump sum borrowers are more likely to use their released funds for needs-based reasons, with the proportion of 31% being twice as high as that seen among drawdown customers, as well as a 4% rise year-on-year.
Conversely, 15% of drawdown borrowers released funds for holidays, which has not been among the top five uses of lump sum borrowers this year.
Paul Carter, chief executive of Pure Retirement, said: “These latest figures continue to underline the importance of effectively using data to fully understand customers so that in turn we, as a sector, can continue to deliver best outcomes for them.
“The increasing levels of activity among younger and single female applicants, as well as the divergent usage patterns among lump sum and drawdown customers, highlight the diverse audience lifetime mortgages [have] continue[d] to serve throughout 2024, providing exciting opportunities for the market going forward.”
