Over a quarter (27%) of new lifetime mortgage customers list repaying debts and mortgages as the primary reason for taking out the product, Pure Retirement has found.

The lifetime mortgage lender’s latest figures for Q1 2025 revealed that this proportion is an increase from 21% in Q1 2024 and from 25% in Q4 2024.

Other reasons for taking out lifetime mortgages in Q1 2025 included house improvements (22%), holidays (9%), gifting (8%) and car purchases (7%).

Pure Retirement found that 57% of new business remains on a joint lives basis, while customers are "evenly split" between taking out lump sum and drawdown plans, which is a 1% reduction on the previous quarter.

Furthermore, on an annual basis, the proportion of single applicants who are widows has reduced by 9% year-on-year to 29%, while the number of single applicants who are unmarried has risen from 21% in Q1 2024 to 35% in 2025.

Chief executive officer at Pure Retirement, Paul Carter, said: "The latest findings continue to demonstrate the evolving customer profile within the later life lending space, and the way its proving an effective solution for a diverse range of demographic profiles.

"We remain hopeful that this will form the basis of the market’s recent onward trajectory, and look forward to continuing to innovate and providing support to provide advisers with the tools they need to deliver best outcomes for their clients."

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