The Intermediary – July 2026 - Flipbook - Page 66
L AT E R L I F E L E N D I N G
Opinion
Does location shape
later life lending?
L
ater life lending is oen
talked about as though it
serves a broad customer
group: homeowners aged
55 and over who want to
make beer use of the
wealth tied up in their property. But
the reality, as advisers will know from
their daily conversations, is more
nuanced than that.
Our latest ‘State of the Nation:
Regional Demographic Trends in the
Lifetime Mortgage Market’ report
shows just how much those customer
profiles can vary by geography.
Looking across all 11 Office for
National Statistics (ONS) regions in
Great Britain, the data highlights clear
differences in customer age, property
value, plan preference, application
type and reasons for releasing funds.
That regional detail maers. Not
because customers should ever be
assessed by postcode alone, but because
understanding the local context can
help advisers have more informed,
relevant and rounded conversations
with the people in front of them.
Property wealth divide
One of the clearest divides is property
value. Across all regions, the average
property value among new lifetime
mortgage customers in 2025 was
£396,105. In London, that figure rose
to £918,864, with 26% of new initial
advances coming from homes worth
at least £1m. At the other end of the
scale, the North East had the lowest
average property value at £226,140,
with 71% of new initial loans coming
from properties valued up to £250,000.
Scotland and Yorkshire and Humber
also showed higher levels of activity
among lower-value properties, with
average property values of £260,500
and £283,142, respectively. By
contrast, the South East recorded
the second-highest average property
value at £542,146, underlining
how differently housing wealth is
distributed across Great Britain.The
64
The Intermediary | July 2026
national average age for new lifetime
mortgage customers was 67.3 in 2025,
but again, the regional picture is more
varied. The North East had the highest
average age at 68.9, closely followed by
Wales at 68.8. The East Midlands and
West Midlands shared the youngest
average age at 66.5.
London is perhaps the best example
of why averages only tell part of the
story. It had the highest proportion
of activity among under-65s, with
this group accounting for 30% of new
initial advance activity compared with
25% nationally. Yet it also had one of
the highest proportions of customers
aged 80 and above, at 12% compared
with 8% across all regions.
Different priorities
The way customers use lifetime
mortgages also varies. Nationally, 54%
of new initial advances were taken
on a lump sum basis. The North East
recorded the highest proportion of
lump sum plans at 66%, while Wales
had the lowest at 51%, giving it the
strongest preference for drawdown.
London also leaned towards a lump
sum, with 62% of new customers
choosing this route.
Application type added another
regional distinction. Across Great
Britain, 57% of new initial advances
were taken on a joint life basis. The
North East had the highest share of
joint life plans at 66%, while London
was the only region where single
life applications outnumbered joint
applications, accounting for 52% of
new initial advances. London also had
the highest proportion of single female
borrowers, with women making up
74% of single life plans, compared
with a 64% national average.
Motivations differed too. Repaying
debts and mortgages was particularly
common in the North East and North
West, accounting for 31% of top loan
usage. In the East Midlands, home
improvements were the leading reason
for releasing funds, accounting for
SIMON HAYTON
is managing director
at Pure Retirement
24%, making it the only region
where this was the primary driver.
In London, giing represented
15% of top loan usage, double the
national average noted in the report’s
key findings.
Why this matters
For advisers, the point is not to
generalise. A customer in London,
Wales, or the North East still needs
advice tailored to their individual
circumstances, objectives, and
preferences. But regional insight
can help frame the right questions.
It can encourage advisers to explore
whether borrowing is driven by debt
repayment, family support, lifestyle
goals, or home improvements, and
whether a lump-sum or drawdown
structure is more appropriate to how
the customer expects to use the money.
The later life lending market is
not one-size-fits-all. By recognising
regional differences in property
values, demographics and customer
priorities, advisers are beer placed
to reflect individual needs and
support conversations that lead to
suitable outcomes.
As the market continues to evolve,
this kind of granular insight will
become increasingly important.
Later life lending customers are not
a single, homogeneous group. They
are homeowners with varying levels
of housing equity, family structures,
and financial goals. Understanding
that diversity is an important part of
improving customer conversations
and, ultimately, delivering
beer outcomes. ●
