Press Releases

Pure Retirement Sees Uplift In Custom From Owners Of £1m+ Properties

23rd August 2022

Pure Retirement have seen a marked uptick in customers with higher property values, according to data analysis conducted on its lifetime mortgage customers between 2018 and 2021. The key headline is a 500% increase in the proportion of its business coming from those owning properties of at least £1m (and a 60% increase from 2020 to 2021 alone).

Delving deeper into the figures also shows that this headline is part of a wider trend of increasing property values among the lender''s new customers. Compared to 2018, the proportion of customers taking out plans who owned properties of at least £400,000 in 2021 has risen 75%, with a 23&37; increase between 2020 and 2021 alone.

Breaking down the new plans agreed by property value and looking at the top 10%, average property values have risen 98% between 2018 and 2021 from £897,000 to £1.78m. Average borrowing amounts among this demographic also rose 74% over the same time period (peaking at £507,621 and amounting to an uplift of nearly £216,500), with a 30% year-on-year rise from 2020 to 2021.

Across the lender's customer base as a whole, there was a 37% increase in the average house value between 2018 and 2021, peaking at over £404,000 last year and representing a 14% year-on-year increase. This is significantly above the UK average of £283,496, indicating that more affluent customers are turning to equity release to finance their retirement.

The increase in property values, along with higher LTV products available has resulted increases in the lender's average borrowing amounts. The average rose by over £24,000 to a peak of £92,405 last year, and a 35% rise compared to both 2018 and 2021.

Pure Retirement CEO Paul Carter says: “These latest findings show the changing demographic among equity release and lifetime mortgage customers, and definitely prove that the old trope of it being a product of last resort is a thing of the past. It's gratifying to see increasingly diverse and more affluent applicants looking at equity release. We're proud to be offering the market's largest intermediary Sales team to support our adviser network in a retirement planning landscape that encompasses an incredibly varied customer base.”

Head of Product Brendan Gilligan adds: “This latest customer analysis demonstrates the degree to which the demographic profiles of those exploring equity release are becoming more varied. It''s therefore important that we as a lender continue to offer a diverse range of products to suit the needs of a wide cross-section of people. We're proud to reflect that by offering a product range with such broad features, including the ability to annually repay up to 40% ERC-free on our Heritage suite of products.”

This website is not intended or approved for customer use. Return to our customer website.