Analysis from Pure Retirement shows that 38% of new business from men in Q3 listed debt repayment as the main reason for taking out a lifetime mortgage, compared to 30% of women.
Home improvements were also a more popular reason for equity release for men, coming to 21% of new business for men during the period, compared to 18% of women.
On the flip side, women were more than twice as likely to release funds for gifting to family and friends, with 13% of women selecting this as the primary reason, up from 6% in men.
Men were also more likely to release funds to buy a car – coming to 10% in Q3 – while this didn’t rank in the top five for women.
Women were more likely to use a lifetime mortgage to go on holiday, at 5%, while for men, it didn’t rank in the top five reasons.
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Around 10% of men and women released funds for the purpose of starting a contingency or emergency fund.
Home value and marital status are key differences
Looking at the value of the homes used, the proportion of business among low-mid-value homes remained “very similar” among men and women, but the gap increased as house values went up.
At the higher end of the scale, 13% of new business from single men in Q3 came from owners of homes worth at least £700,000, compared to 3% among single women.
Among new lifetime mortgage customers, single women are more likely to be widowed, making up 38%, which compares to 22% of men.
Women are also more likely to be divorced, at 36%, compared to men at 30%.
Men are significantly more likely to be unmarried, at 42%, which is almost double the 22% of women.
Men are also far more likely to take out a lifetime mortgage on a lump sum basis, accounting for 72% of single male activity, compared to 58% of new plans taken out by single women.
Differences between genders show need to meet variety of circumstances
Simon Hayton, Pure Retirement’s chief operating officer, said the “differing demographic profiles, and diverse needs” between male and female single applicants serve to “underline the need to not only deliver products that meet a variety of circumstances but also the importance of nuanced advice and customer service throughout the lifetime mortgage journey”.
“Through sharing these figures, we hope to widen understanding within the market to help continue to deliver best outcomes, while also using them as a foundation to enhance our own offering going forward,” he added.
Jim Boyd, the Equity Release Council’s (ERC’s) CEO, added: “These figures highlight how individual circumstances, life experiences and financial priorities can shape the way people choose to release equity from their homes.
“The fact that men and women show different patterns of use underlines why personalised, regulated advice is at the heart of the Council’s Standards. Later life lending is never a one-size-fits-all decision; it is about understanding customer needs, tailoring solutions, and ensuring people have the confidence that their choices will deliver the best outcomes for them and their families.”
