New data from L&G’s Home Finance business shows a noticeable change in how homeowners are tapping into equity release. Fewer customers are using their property wealth to clear debts compared to recent years.
Between the first half of 2024 and the first half of 2025, the share of new applicants using equity release to pay off an existing mortgage dropped from 31% to 19%. Similarly, the number accessing funds to settle other debts, such as loans or credit cards, fell from 25% to 23%.
Instead, many are turning to their property wealth to fund quality-of-life expenses and family-related priorities. Half of the customers (50%) are using the money for home improvements, while around one in five (18%) are supporting other family members by providing financial gifts.
Mike Batty, product & proposition director, home finance at L&G, said, “Property wealth continues to be a useful tool for homeowners looking to fund later life and help achieve longer-term goals. It’s encouraging to see people turning to the money tied up in bricks and mortar to improve their quality of life.”
He added, “As a lender, we continue to work with advisers and the wider industry to ensure the best outcomes for people looking to benefit from accessing their property wealth. While not suitable for everyone, lifetime mortgage solutions can be an important consideration as part of a holistic approach to financial planning.”
