Later life sourcing platform, Advise Wise, says it has seen significant increases in average lifetime mortgage 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.
Jonathan Thirkill, chief executive at Advise Wise, commented: “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.”
