A quarter of people are releasing later life funds for debt and mortgage repayments, research shows.
According to research from Pure Retirement on customer data for Q4, this is the highest on a quarterly and annual basis and the most common reason for releasing later life funds.
It has overtaken home improvements, which stood at 23% in Q4 2024.
Only a tenth of people use later life funds for a holiday, which is consistent compared to figures in previous quarters.
Gifting and car purchases are the fourth- and fifth-most popular reasons to release funds, each accounting for 7%. This is a slight fall from the same period last year, when gifting was 10% and car purchases stood at 9%.
The research also shows a preference for drawdown plans, making up 51% of lenders’ new business. This is a 7% increase on the same period last year.
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Lifetime mortgages on a joint life basis have grown to 54%, a slight increase on 53% last year.
Single life business from male applicants hit a 12-month high of 37%, but female applications still make up the majority at 63%.
Paul Carter, Pure Retirement’s CEO, said: “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 [that] all of us at Pure Retirement are committed to meeting.”
