Lifetime mortgages continue to dominate the sector, accounting for more than 99 percent of all equity release products completed. These plans allow homeowners to release funds while remaining in their homes, with repayment typically made when the property is sold at a later date.
How Homeowners Are Using Equity Release
Mortgage Soup highlights survey data from the Equity Release Council that reveals changing borrower motivations and use of funds.
More than a quarter of advisers, around 26 percent, reported that customers are using equity release to repay existing mortgage balances. This trend reflects the reality that many homeowners are reaching later life with outstanding mortgages and are seeking solutions to reduce monthly outgoings.
The report also shows that equity release is increasingly being used for positive and planned purposes. Around 40 percent of borrowers are using the funds for lifestyle improvements, including home renovations, holidays, and larger purchases such as cars. In addition, approximately 13 percent of customers are releasing equity in order to provide financial support or gifts to family members.
These trends suggest that equity release is no longer viewed purely as a last resort, but as a considered part of long term financial planning.
Industry Commentary and Market Outlook
Mortgage Soup references comments from Jim Boyd, Chief Executive of the Equity Release Council, who noted that the growth seen in 2025 underlines the importance of housing wealth in supporting financial resilience in later life.
The article also points to strong adviser confidence in the future of the market. Around 80 percent of advisers surveyed expect equity release lending to continue increasing in 2026, while only a very small proportion anticipate a decline.
This optimism is supported by ongoing improvements in product flexibility, consumer safeguards, and adviser standards across the sector.
What This Means for Homeowners Considering Equity Release
The analysis reported by Mortgage Soup makes clear that equity release is becoming an increasingly mainstream option for homeowners looking to improve their financial position in later life. Rising living costs, longer life expectancy, and pressure on traditional retirement income sources mean that many people are exploring how property wealth can be used responsibly.
However, equity release is a long term commitment, and understanding the full range of products available is essential.
Why Independent Advice Matters
While the market continues to grow, Mortgage Soup’s coverage reinforces the importance of receiving high quality, independent advice. With multiple lenders, product features, and interest rates available, choosing the right plan requires a whole of market approach.
This is where working with an experienced broker can make a meaningful difference, helping ensure the solution selected aligns with personal goals, future plans, and financial circumstances.
Final Thoughts
As reported by Mortgage Soup, the 11 percent rise in equity release lending during 2025 demonstrates how homeowners are increasingly using housing wealth to support later life needs. With continued market confidence and growing awareness, equity release is set to remain an important part of retirement planning for many.
For anyone considering equity release, understanding the market data and seeking expert, independent advice remains key to making informed and confident decisions.
Rear the full article here : https://mortgagesoup.co.uk/equity-release-lending-rises-11-in-2025-as-homeowners-tap-housing-wealth/
