Almost two-thirds of equity release borrowers choosing to pay some or all of the interest on their loans are aged under 70, according to customer data from lifetime mortgage lender more2life.

The lender’s figures show that borrowers aged under 70 accounted for 63.6% of its Interest Reward customers during the first nine months of the year, compared with 49.9% of customers taking out standard lifetime mortgages, where interest typically rolls up over the life of the loan.

Customers aged 60 to 64 represented the largest single age group among Interest Reward borrowers, accounting for 25.9% of cases. Borrowers aged 55 to 59 also accounted for a greater proportion of Interest Reward lending than standard lifetime mortgage borrowing.

The figures suggest younger equity release customers are more likely to consider making interest payments to manage the long-term cost of borrowing and preserve more equity in their properties.

Interest Reward products allow customers to reduce their interest rate through qualifying repayments, helping limit the amount of interest accumulating over time. This can reduce the overall cost of borrowing and leave customers with more equity in their homes, potentially providing greater flexibility throughout retirement.

More2life said the data reflected a broader shift in the later life lending market, with advisers increasingly helping customers explore solutions tailored to different retirement needs and financial circumstances.

Dave Harris, chief executive of more2life, said homeowners were increasingly engaging with advisers earlier and taking a more proactive approach to retirement planning.

“The later life lending conversation is evolving and while lifetime mortgages were historically often viewed as a solution that customers considered relatively late in retirement, we’re seeing homeowners engage with advisers much earlier and take a far more proactive approach to planning,” he said.

“The fact that Interest Reward products are attracting a significantly younger customer base suggests many borrowers want to stay flexible while also taking practical steps to manage the long-term cost of borrowing.”

Harris said the length of time a lifetime mortgage remained in place could have a significant impact on the equity ultimately left in a property.

“Someone who takes out a lifetime mortgage at 60 could have it for 25 or 30 years, so the way interest builds up makes a big difference to what’s left at the end,” he said.

He added that people in their late 50s and 60s were increasingly likely to remain in work, potentially enabling them to use some of their income to cover interest payments.