The average new lifetime mortgage customer is aged 68, Pure Retirement reveals, as the age continues to get younger.

The latest data finds that under-70s now represent 59% of all new initial advance activity, compared to 43% at the same point in 2023, and 50% in Q2 2024.

However, the proportion of business coming from over-75s has reduced to sit 15%, down from 31% a year ago, and 23% in Q2 of this year.

The lender reveals there is a preference for drawdown over lump sum plans for the first time among new customers in Q3.

Over the last quarter, 51% of new customers chose this plan compared to a year ago where only 41% of new customers preferred drawdown plans and Q2 of this year where 46% chose drawdown plans.

Among single life applicants the proportion being female continues to grow, and currently sits at 70%. This contrasts with the 64% at the same point a year ago, and 67% in Q2.

Research shows that lump sum customers are far more likely to use their released funds for needs-based reasons, with the 31% proportion being both twice as high as that seen among drawdown customers, and a 4% rise year-on-year.

Meanwhile, 15% of drawdown customers released funds for holidays, while this particular use hasn’t been seen in the top five uses among lump sum customers at all in 2024.

Pure Retirement chief executive officer Paul Carter says: “These latest figures continue to underline the importance of effectively using data to fully understand customers so that in turn we, as a sector, can continue to deliver best outcomes for them.”

“The increasing levels of activity among younger and single female applicants, as well as the divergent usage patterns among lump sum and drawdown customers, highlight the diverse audience lifetime mortgages will continue to serve throughout 2024, providing exciting opportunities for the market going forward.”