Average Lifetime Mortgage Lump Sum Query Amount Increases 29% Annually
Later life sourcing platform Advise Wise has released its latest data, pointing towards positive trends in the sector over the year so far and echoing those reported by the likes of the Equity Release Council and UK Finance.
This has included significant increases in average loan amounts on an annual basis, for both the first half of the year and for Q2 in isolation. Among lump sum queries, the average amount searched for increased from just under £110,000 in H1 2024 to around £141,500 over the same period this year - an increase of 29%.
A similar pattern has emerged when examining Q2 in isolation, with a rise from £112,950 to £142,800 representing a 26% uplift.
Among queries on drawdown products, the half-yearly average reserve amount has risen from £57,710 to £67,820, representing an increase of 17%.
The first half of the year saw lump sum options continue to make up the majority of searches, accounting for 57% of queries over H1. However, this represents a reduction from 62% seen over the same period last year.
Engaging with mainstream partners to grow the market
The latest analysis comes following the firm partnering with Twenty7tec in a move that means Advise Wise’s later life sourcing technology is integrated into the Twenty7tec platform to give advisers access to a range of later life lending products, including lifetime mortgages.
Research from Twenty7tec found that around 15% of first-time buyers were over the age of 40, and the proportion of those aged 51 and over buying their first home had risen by 80% in the last five years from 2% to 3.6%, highlighting the need for advisers to holistically consider all options.
Chief Executive Jonathan Thirkill says: “Our latest figures and findings echo the positive statistics that have recently been released from the Equity Release Council and UK Finance, Additionally, the increase in average loan amounts being searched for tally with recent research from lifetime mortgage lender Pure Retirement - who saw 12% of new business coming from owners of properties worth at least £700,000 in Q2 - in underlining the way later life lending is appealing to a broad spectrum of demographic and wealth profiles.
However, there remains untapped potential and ongoing work needs to take place to bring market volumes back to the levels seen at the market’s peak in 2022. Our recent partnership with Twenty7tec demonstrates the opportunity through integrating later life lending into holistic advice, and also underlines the growing interest by the mainstream financial advisers in lifetime mortgages.”
