How later life clients have changed: what today’s equity release customer really wants

The later life lending market has undergone a remarkable transformation over the past decade. Once viewed primarily as a last resort solution for older homeowners in financial difficulty, lifetime mortgages are now being used by a far broader and more diverse range of clients to achieve a wide variety of lifestyle and financial objectives.

Recent research from Pure Retirement's State of the Nation: Regional Demographic Trends in the Lifetime Mortgage Market highlights just how varied today's later life lending customer base has become, reinforcing the need for advisers to move beyond traditional assumptions about who uses equity release and why.

From need-based borrowing to lifestyle planning

Historically, equity release was often associated with clients seeking to alleviate financial hardship, clear debts, or supplement insufficient retirement income.

While these motivations remain important, today's later life clients increasingly see property wealth as a tool to enhance their quality of life. According to Pure Retirement's research, homeowners are using lifetime mortgages for everything from home improvements and gifting money to family members, to funding holidays, purchasing cars, and creating contingency funds. 

This shift reflects a wider change in attitudes toward retirement. Many older homeowners no longer view their property simply as an asset to pass on but as a source of wealth that can actively support their lifestyle, wellbeing, and family ambitions throughout retirement.

A younger later life lending customer

Another notable evolution is the age profile of borrowers.

Pure Retirement's research found significant activity among clients under 65, particularly in regions such as London, the East of England, and Yorkshire & Humber. London recorded the highest proportion of lifetime mortgage activity among under 65s, demonstrating how customers are engaging with later life lending solutions earlier in their retirement journey. 

At the same time, advisers continue to support older borrowers, with regions such as the North East and Wales seeing average customer ages approaching 69. The result is a customer base that spans multiple generations of retirement, each with distinct priorities and planning needs. 

Regional differences matter more than ever

One of the strongest messages from the report is that there is no such thing as a "typical" later life lending client.

Pure Retirement's analysis found major regional differences in customer demographics, property values, borrowing patterns, and loan purposes. In London, for example, gifting was among the most prominent uses of released equity, with the proportion of customers gifting to friends and family being double the national average. Meanwhile, in the North East and North West, debt and mortgage repayment remained the most common reason for releasing funds.

The East Midlands stood out as the only region where home improvements were the leading reason for releasing equity, while Scottish customers were more likely than their counterparts elsewhere to use funds for holidays and vehicles. 

These findings demonstrate why advisers need to understand not only the products available but also the specific circumstances, aspirations, and challenges facing clients within their local markets.

Greater choice is shaping client behaviour

The evolution of customer needs has been accompanied by significant product innovation.

Today's clients are increasingly choosing flexible borrowing options that enable them to access equity gradually rather than taking a large lump sum upfront. Pure Retirement found regional variations in the preference for drawdown and lump sum plans, with Wales recording the highest proportion of drawdown customers and the North East showing the strongest preference for lump sum borrowing. 

This reflects growing consumer awareness and a desire for solutions that align with long-term retirement planning rather than a single immediate requirement. Clients want flexibility, control, and the ability to adapt their finances as circumstances change.

Family dynamics are changing

Modern family structures are also influencing borrowing behaviour.

The report highlights notable differences in single applicant profiles across the country, with varying proportions of widowed, divorced, unmarried, male, and female borrowers. London recorded the highest proportion of single women taking out lifetime mortgages, while Wales had the highest proportion of single men. The South West saw the highest proportion of divorced single-life customers. 

These trends illustrate how advisers now support a more diverse client demographic than ever before. Retirement planning is increasingly influenced by later-life relationships, divorce, inheritance planning, intergenerational wealth transfers, and evolving family responsibilities.

What this means for advisers

For advisers, the message is clear: later life lending is no longer a niche or uniform market.

Today's clients are entering retirement with different financial positions, property wealth levels, family circumstances, and aspirations. Some want to clear outstanding debt, others want to renovate their homes, support children and grandchildren, or simply enjoy retirement more fully.

As Simon Hayton, Managing Director at Pure Retirement, notes, it is vital to develop a "granular and nuanced understanding of consumer patterns" rather than viewing older homeowners as a single homogeneous group. 

The advisers best positioned to succeed in this evolving environment will be those who take the time to understand clients' broader goals and recognise that later life lending can play a role in a wide range of financial planning conversations.

The bottom line

The modern later life lending customer looks very different from the customer advisers may have encountered a decade ago. Equity release has evolved from a specialist borrowing solution into a flexible financial planning tool that supports a broad spectrum of retirement objectives.

As customer motivations continue to diversify, advisers who embrace this changing landscape and tailor their recommendations accordingly will be best placed to deliver meaningful outcomes for clients in later life.

Source: Pure Retirement State of the Nation: Regional Demographic Trends in the Lifetime Mortgage Market.