New research from Pure Retirement has revealed significant regional differences in the lifetime mortgage market, with variations in customer age, property values, and borrowing behaviour across Great Britain’s 11 Office for National Statistics regions.
The lifetime mortgage lender’s report, State of the Nation: Regional Demographic Trends in the Lifetime Mortgage Market, underscores the importance of understanding how demographic profiles, property values, and usage patterns vary significantly across geographies.
The North East was found to have the highest average customer age at 68.9, while the West and East Midlands had the lowest at 66.5. London, meanwhile, saw the highest proportion of activity among under-65s, and unsurprisingly, the greatest concentration of higher-value properties, with 26% of new loans coming from homes worth £1m or more.
At the other end of the spectrum, 71% of new lending in the North East came from properties valued under £250,000, underlining the wide variation in housing equity across the country.
The report also highlights clear regional differences in how customers are using their funds. The East Midlands stands out as the only region where home improvements are the primary reason for releasing equity, demonstrating how local trends can shape borrowing motivations.
In addition, regional differences extend to plan preferences and customer profiles. The North East has the highest proportion of customers opting for lump sum plans, while Wales shows the strongest preference for drawdown. London is the only region where single life applications outnumber joint applications and has the highest proportion of single female borrowers.
Financial advisers can download the full report, which explores regional trends in more detail.
Understanding a diverse customer base
The findings highlight the extent to which the later life lending market is shaped by regional factors, including property values, age demographics, and financial priorities.
“We’ve long known the later life lending market isn’t one-size-fits-all, and this report highlights how important it is for advisers to understand the customers in their own region. By recognising these regional differences – whether in property values or customer priorities – advisers are better placed to reflect their clients’ needs and have more informed, relevant conversations that lead to the right outcomes.”
Pure Retirement’s Managing Director, Simon Hayton
The report forms part of Pure Retirement’s ongoing commitment to sharing insight with the wider market, helping advisers build a clearer picture of customer needs and trends, and ultimately deliver improved outcomes for those exploring their later life financial options
