The Intermediary –- May 2026 - Flipbook - Page 82
L AT E R L I F E L E N D I N G
Opinion
Ready to grab
the underlying
opportunities
T
he Equity Release
Council figures for
the first three months
landed recently, and
while there have been
reductions in plan
numbers and lending amounts on
both an annual and quarterly basis,
adviser feedback suggests underlying
demand is resilient, despite the
slowdown in lending.
The figures also highlighted that
nearly half (45%) of firms reported
an increase in enquiries compared to
the previous quarter, while only one
third (33%) reported a decrease, while
applications also rose for many firms
with 38% reporting an increase over
the quarter.
The current landscape
While it’s naturally disappointing
to see reductions in case and lending
volumes on both a quarterly and
annual basis, it would be naïve to
expect anything else, given wider
geopolitical movements and the
subsequent effects on wider financial
markets. This is something that
There remain
untapped sources of
seamless and streamlined
referral pathways”
has also been seen in the residential
mortgage market, highlighting the
wide-reaching effects of ongoing
uncertainty and associated effects on
consumer confidence.
However, the key takeaway is the
increase in consumer enquiries and
interest, signifying the extent to
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The Intermediary | May 2026
which later life lending is becoming a
mainstream financial planning tool
among over-55s.
As an industry, we now need to
ensure that products and processes
meet consumer needs, helping to
ensure that when customers are
comfortable in proceeding, they
feel that they have the best possible
experience as they seek to reach their
financial goals.
Versatile customer profiles
While volumes may not be where
we as an industry would ideally like
them, there nonetheless remains
an underlying opportunity when
demand rebounds. This is perhaps
best demonstrated in the demographic
paerns, which highlight the diverse
range of consumer profiles currently
being met by later life lending and
lifetime mortgages.
For instance, our Q1 statistics
highlighted that more than four in
10 (43%) new lifetime mortgages
were taken out by owners of detached
properties, marking a slight rise on an
annual basis from the 41% seen over
the same period in 2025. Owners of
semi-detached properties, meanwhile,
accounted for 35% of new lifetime
mortgage activity in the first three
months of the year, with mid-terraces
representing 11.8%.
While activity remains most
prevalent among owners of mid-value
properties – £250,000 to £399,000,
accounting for 39% of new lifetime
mortgages in Q1 and representing an
5% annual increase – new customers
are emerging from across the property
value spectrum, owners of higher
value homes (with a value of at least
£700,000) making up one in eight
(12%) of new plans over the first three
months of the year. Additionally, just
under three in 10 (28%) of new plans
SIMON HAYTON
is managing director
at Pure Retirement
taken out in Q1 came from over-75s,
marking the highest proportion from
this cohort in 12 months, compared
to a 20% proportion over the first
three months of 2025, underlining
the ever-evolving customer profile
among those taking out a new
lifetime mortgage.
Similarly, there’s been a near-even
split between those releasing funds
primarily for debt and mortgage
repayments and home improvements
(26% and 24% respectively), while
discretionary spending in Q1
increased, with 11% of new lifetime
mortgages in Q1 being taken out for
holidays (up from 9% in Q1 2025), and
10% of new plans listing a car purchase
as the primary reason for borrowing
(up from 7% over the same period
last year).
Preaching the gospel
Ultimately, there are opportunities to
promote the underlying potential of
the later life lending market, citing the
pent-up demand and diverse customer
profiles as key examples of the appetite
for modern later life lending solutions
across the socioeconomic landscape.
There remain untapped sources
of seamless and streamlined referral
pathways through the effective
education of residential mortgage
advisers, estate agents, and other
satellite industries.
Maybe now’s the perfect time to
unite collectively as an industry and
help raise awareness among the wider
financial services market, helping to
preach the gospel in preparation for
consumer confidence to return among
calmer geopolitical waters. ●
