Q2 2026 Equity Release Market Report
Equity Release Market Returns to Growth in Q2 2026
The UK equity release market showed renewed momentum during the second quarter of 2026. Lending and customer activity both increased compared with the opening three months of the year, while new plan numbers returned to the same level recorded in Q2 2025.
Market update from My Later Life, based on the Equity Release Council Q2 2026 lending report.
A More Positive Quarter for the Equity Release Market
After a quieter start to 2026, the second quarter brought signs of a steadier and more confident market. According to the Equity Release Council, homeowners accessed £597 million of property wealth between April and June, up from £574 million in Q1.
The number of customers using equity release also increased. In total, 13,489 new and returning customers used the market during the quarter, representing growth of 4% compared with the previous three months.
New plan activity was particularly encouraging. The number of new plans rose by 9% to 5,307, matching the level recorded during Q2 2025. Further advance activity also strengthened, with customer numbers rising by 12% to 1,204.
Although total lending and customer activity remained slightly below the same quarter last year, the improvement suggests that the market is continuing to stabilise.
More people appear to be reviewing how housing wealth could support their later-life plans. However, equity release remains a long-term financial commitment and should only be considered after the costs, risks and alternatives have been explained.
Overall Market Activity
| Overall activity | Q2 2025 | Q1 2026 | Q2 2026 | Quarterly change | Annual change |
|---|---|---|---|---|---|
| Total lending | £636m | £574m | £597m | +4% | -6% |
| Total customers | 14,404 | 12,958 | 13,489 | +4% | -6% |
| New plans | 5,319 | 4,868 | 5,307 | +9% | 0% |
| Returning drawdown customers | 7,640 | 7,019 | 6,978 | -1% | -9% |
| Further advance customers* | 1,445 | 1,071 | 1,204 | +12% | -17% |
Average Loan Sizes in Q2 2026
Borrowing patterns varied depending on the product selected. The average new lump-sum lifetime mortgage fell by 6% over the quarter to £113,779. By contrast, the average initial drawdown amount increased by 2% to £63,642.
This suggests that many customers continued to value the flexibility of taking an initial amount while keeping access to a reserve for possible future use.
| Average loan size | Q2 2025 | Q1 2026 | Q2 2026 | Quarterly change | Annual change |
|---|---|---|---|---|---|
| New lump sum | £126,422 | £121,196 | £113,779 | -6% | -10% |
| New initial drawdown | £65,856 | £62,633 | £63,642 | +2% | -3% |
| New drawdown reserve | £53,338 | £61,307 | £56,893 | -7% | +7% |
| Returning drawdown | £13,150 | £13,528 | £13,153 | -3% | 0% |
| Lump-sum further advance | £30,180 | £32,870 | £31,866 | -3% | +6% |
| Drawdown initial further advance* | £27,303 | £26,568 | £29,367 | +11% | +8% |
| Drawdown further advance reserve* | £6,545 | £6,282 | £6,092 | -3% | -7% |
Customer Activity Strengthened
Customer numbers increased from 12,958 in Q1 2026 to 13,489 in Q2, a rise of 4%.
New customer activity rose by 9% quarter on quarter.
Activity remained broadly stable, down by just 1%.
The number of customers taking additional borrowing rose by 12%.
Drawdown Remained the Preferred Option
The report shows that drawdown continued to be the dominant choice among new equity release customers.
The average initial drawdown increased by 2% to £63,642, while the average value of drawdown initial further advances rose by 11% to £29,367. Although average drawdown reserves fell by 7% during the quarter, they remained 7% higher than in Q2 2025.
This pattern indicates that many customers preferred to access only part of their available housing wealth initially, while retaining the option to take further funds later.
Interest is generally charged only on money that has already been withdrawn, rather than on the full reserve. Future withdrawals remain subject to the lender’s terms and the interest rate available at that time.
Total Quarterly Lending
Quarterly lending increased from £574 million in Q1 2026 to £597 million in Q2. The report describes this as a sign of improving customer activity and continued market stabilisation.
Despite the quarterly improvement, lending remained 6% below Q2 2025, when £636 million was released.
What the Q2 Figures Mean for Homeowners
The Q2 data shows a market that is becoming more active, but homeowners should not treat higher activity as a reason to rush into a decision.
Equity release can be used for many purposes, including repaying an existing mortgage, making home improvements, supporting family or improving retirement income. However, the right plan depends on the homeowner’s age, property, objectives and wider financial position.
At My Later Life, we can search across suitable equity release lenders and plans available through our service. We compare rates, fees, repayment options, drawdown facilities and other plan features to help identify a competitive option that fits the customer’s circumstances.
We also consider alternatives, including retirement interest-only mortgages, later-life repayment mortgages, using savings or downsizing.
About the Data
The Equity Release Council states that its figures are compiled from actual whole-of-market provider returns and are not estimated. Categories marked with an asterisk are more volatile because they represent relatively modest borrowing amounts or customer numbers.
Lifetime mortgages account for more than 99% of the equity release market. They allow older homeowners to borrow against their property without necessarily making monthly repayments, although repayments can be made where the plan permits. The loan and interest are normally repaid when the final customer dies or moves permanently into long-term care.
Read the Full Q2 2026 Market Report
The original Equity Release Council report contains the full tables, charts and supporting notes used in this market update.
Open the Original PDF Speak to My Later Life
Q2 2026 Equity Release Market Report: The Final View
The second quarter of 2026 delivered a clear improvement in equity release activity. Lending rose by 4%, overall customer numbers increased by 4%, and new plan activity grew by 9%.
Drawdown remained the leading product choice, while average lump-sum borrowing fell. This suggests that customers continued to take a measured approach, accessing money when needed rather than necessarily taking the maximum amount upfront.
For homeowners considering equity release, market statistics can provide useful context, but they cannot determine whether a lifetime mortgage is personally suitable.
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Source: Equity Release Council market bulletin, Q2 2026 lending data - full report.
Important information: Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
A lifetime mortgage is a loan secured against your home. Interest may be added to the amount borrowed, meaning the balance can increase through compound interest.
N.B. “This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.”
