March 12, 2026
A shift in equity release priorities
| Figures from the Equity Release Council revealed a 10% annual increase in borrowing in Q2 2025. | In H1 2025, making home adaptations or improvements was the top reason for using equity release. | More homeowners are taking out a lifetime mortgage to fund day-to-day living, highlighting cost of living pressures. |
From property renovations to dream holidays, homeowners are increasingly using equity release to help fund later life choices.
Figures from the Equity Release Council revealed a 10% increase in borrowing in the second quarter of 2025 compared with the previous year1. Equity release enables homeowners aged 55-plus to cash in on the wealth tied up in their property.
In the first half of 2025, making home adaptations or improvements was the top reason (43%) for taking out a lifetime mortgage, followed by clearing an existing mortgage (27%), according to one customer survey2. The previous year, the results were the other way round, showing a shift in borrowers’ priorities.
Sharing the gift of property wealth
The number of homeowners taking out a lifetime mortgage to fund day-to-day living increased from 20% in 2024 to 27% last year, highlighting the impact of the cost-of-living crisis on older adults. Funding holidays (25%) and making gifts to family and friends (22%) also featured in 2025’s top five reasons.
1ERC, 2025, 2Canada Life, 2025
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home. Equity released from your home will be secured against it. Equity release may reduce the value of your estate and affect your entitlement to meanstested benefits
