Lifetime mortgages are increasingly being taken out by wealthier homeowners, with 16% of new plans in Q2 2026 secured against properties worth £700,000 or more, more2life data has revealed.

The proportion rose from 15% in the same quarter last year, while 7% of new lifetime mortgages were taken out against homes valued at £1m or more. The figures challenge the perception that lifetime mortgages are primarily used by owners of lower-value properties and suggest later life lending is becoming another part of retirement and financial planning.

The average property value among new more2life lifetime mortgage customers rose 3.3% year on year to £463,650 in Q2, outpacing the 2.2% annual UK house price growth reported by Nationwide. The increase indicates that borrowers continue to hold significant housing wealth and are increasingly considering property as part of their retirement funding strategies.

Detached homes remained the most common property type among new lifetime mortgage customers, accounting for 41% of plans in Q2, up from the previous quarter. Semi-detached properties represented 33% of new plans, while terraced homes accounted for 21%.

The lender argued advisers should consider lifetime mortgages alongside equity release, retirement interest-only mortgages and other appropriate later life borrowing solutions when assessing customers’ individual circumstances and objectives.

Dave Harris, CEO of more2life, said: "Our latest data shows that lifetime mortgages are being used by a far wider range of homeowners than many people assume.

"We're seeing housing wealth play an increasingly important role in retirement planning, including among homeowners who may traditionally not have considered later life lending solutions. That makes it even more important that consumers are aware of all the options available to them and are supported by advice and referral processes that consider the full range of later life lending products."

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