Increases in Debt and Mortgage Repayments, Drawdown Plans, and Single Male Applicants in Q4 – Pure Retirement

23 January 2025

Lifetime mortgage lender Pure Retirement has analysed its customer data for Q4, noting a number of shifts on an annual basis when compared on a quarterly and annual basis.

One in four people released funds for debt and mortgage repayments

The lender’s usage data now sees one in four people (25%) primarily releasing funds for debt and mortgage repayments – the highest it’s been on both a quarterly and annual basis (both 23%), and overtaking home improvements (23% in Q4 2024) as the most common reason for releasing funds.

One in ten (10%) of people continue to cite holidays as the main reason for accessing the equity in their home, a proportion that’s remained consistent over the past year.

Gifting and car purchases round out the top five most popular reasons, albeit with reductions in proportions. In Q4 2024 Gifting accounted for 7% of primary usage for released funds, down from 10% in Q4 2023, while the proportion of released funds being used for car purchases have also fallen from 9% to 7% on an annual basis.

Shifts in plan type preference, application type, and single applicant gender

The lender’s data also points to a preference toward drawdown plans, which now accounts for 51% of the lender’s new business. While this remains static on a quarterly basis, it represents a 7% annual swing, where only 44% of new business was on a drawdown basis in Q4 2023.

The proportion of customers taking out lifetime mortgages on a joint lives basis has also increased, accounting for 59% of new business in Q4 and representing a 3% rise compared to Q3, and a 1% rise on an annual basis.

The amount of single life business coming from male applicants in Q4 2024 was the highest it’s been over the prior twelve months, at 37%. While still a minority compared to the 63% coming from female applicants, it nonetheless represents a 7% swing from Q3.

Speaking of the findings, Pure Retirement CEO Paul Carter says:

“The latest findings continue to demonstrate that the lifetime mortgage customer is constantly evolving, and that as an industry we need to remain proactive in identifying these trends and similarly evolving with them to continue offering effective lifetime mortgage solutions that meet a range of needs. It’s going to be a key challenge in 2025, and one which all of us at Pure Retirement are committed to meeting.”