Equity Release Council Q3 2025 Report: Market Remains Resilient Amid Rate Uncertainty Published: November 2025 | By My Later Life

Equity Release Council Q3 2025 Report: Market Remains Resilient Amid Rate Uncertainty
Published: November 2025 | By My Later Life

The latest report from the Equity Release Council (ERC) shows the later-life lending market has stayed strong and resilient through Q3 2025 — even as many homeowners adopt a cautious, wait-and-see approach to interest rates.

Headline Figures
£639 million in total lending during Q3 2025 — slightly higher than Q2 and up 4% year-on-year.
13,158 new plans agreed — down ~9% compared to Q3 2024, reflecting a smaller number of clients borrowing larger sums.
Average loan sizes rising:

New lump-sum plan: £116,507 (+4% y-o-y)
Initial drawdown: £83,906 (+20% y-o-y)
Further lump-sum advance: £41,069 (+44% y-o-y)
Split of new customers: roughly 51% lump-sum vs 49% drawdown.
The Council described the sector as “mature and stable”, with customers acting carefully and viewing equity release as a long-term financial-planning tool rather than a short-term fix.

What This Means for Homeowners
For people aged 55 and over, these figures show that equity release and lifetime mortgages remain an important way to unlock housing wealth — but clients are more selective and thoughtful about when to act.

Many homeowners are using property wealth to:

Clear existing mortgages or debts
Fund home improvements or adaptations
Support family financially
Supplement retirement income
This careful approach highlights a growing awareness of how later-life lending can be part of broader retirement and estate planning.

How My Later Life Can Help
At My Later Life, we’re here to help you make sense of the market.

Whether you’re ready to explore your options or simply gathering information, our advisers will:

Explain how lifetime mortgages and drawdown plans work
Compare products from across the market
Show how current rates and trends may affect your decision
Help you make a choice that fits your goals and protects your long-term interests
We’re proud to be regulated by the Financial Conduct Authority and aligned with Equity Release Council standards, ensuring our clients receive transparent, ethical, and responsible advice.

“Despite uncertainty, later-life lending remains strong — showing confidence in the market and in the value of property wealth as part of retirement planning.”
— Equity Release Council, Q3 2025 Report

In Summary
The UK equity release market continues to adapt to new conditions — smaller in volume, stronger in value. Borrowers are taking measured decisions, using their housing wealth to support meaningful life goals.

If you’re wondering what this means for you, talk to us at My Later Life. We’ll help you understand whether now is the right time, what options are available, and how to make the most of your home’s value safely and confidently.

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