Equity Release continues to grow in popularity

Recent lending figures¹ for last year show equity release lending totalled £2.57bn, a significant 11% increase on £2.3bn recorded the previous year.

Drilling down into the data, it seems borrowers are choosing equity release for a variety of factors, with 40% saying they are putting it towards ‘positive uses’ including home improvements (21%), gifting to family (13%), holidays (6%), or other large purchases such as a car (4%). Over a quarter (26%) are using equity release to clear their mortgage balance.

Chief Executive of the Equity Release Council (ERC), Jim Boyd, said the annual growth revealed the pivotal role “housing wealth is playing in supporting financial resilience and choice in later life.” Adding that the flexibility and security provided by modern products is making “accessing housing wealth a core part of retirement planning” and has supported nearly “£1 in every £90 spent by retired households.”

In the final quarter of last year, the average amount released rose to £123,174, an uptick of 5.7% year-on-year.

No longer regarded as a fallback, equity release is increasingly supporting a wider range of family needs and retirement ambitions to enhance lifestyles, provide greater financial resilience and assist with estate planning.

Equity release isn’t right for everyone. Whether it’s appropriate depends on your personal circumstances, goals and wider financial picture. We can help you understand your options and decide what’s right for you and your family.

Equity release reduces the value of your estate and may affect your entitlement to means‑tested benefits.

¹ERC 2026

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.