Regional differences continue to shape later life lending market

Britain’s over-55s are utilising housing equity to improve their life in their later years. But are there regional differences in the type of people using lifetime mortgages to reach their later life financial goals, and what they’re using the released equity for?

Significant regional differences in customer behaviour and property values are shaping the lifetime mortgage market, according to new research from Pure Retirement.

The lender’s latest report, ‘State of the Nation: Regional Demographic Trends in the Lifetime Mortgage Market’, found considerable variation across Great Britain’s 11 Office for National Statistics (ONS) regions, highlighting the importance of regional understanding within later life lending. Here are some highlights from the report: 

• Average age
  The North East recorded the oldest average customer age at 68.9 years, while the East and West Midlands had the youngest average customer age at 66.5. London had the highest proportion of borrowers aged under 65.
• Property value
  London had the largest concentration of higher-value properties, with more than a quarter (26%) of new loans secured against homes worth £1m or more.
  By contrast, the North East recorded the greatest proportion of lower-value properties, with 71% of new lending linked to homes worth less than £250,000.
• Product preferences
  The North East recorded the highest proportion of customers
  selecting lump sum products, while Wales had the strongest preference for drawdown plans.

Simon Hayton, managing director at Pure Retirement, said: 

“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.”