Today’s announcement from the Equity Release Council revealed a notable surge in homeowners accessing their housing equity through lump sum products, with new customer numbers rising by 14% and the average amount borrowed increasing by 23% compared to the same period last year.
Industry professionals and experts have shared their thoughts to the recent figures.
Commenting on today’s Q2 lending data issued by the Equity Release Council, Will Hale, CEO of Key Advice & Air says:
“Today’s data announced by the Equity Release Council is encouraging as it confirms a market returning to growth.
The increase in average case sizes that have supported the increase in lending value are an indication that more affluent customers and their advisers are recognizing the importance of considering housing wealth within their planning for later life – particularly given the recent changes announced to the treatment of pension assets from an IHT perspective.
However, the lack of growth in customer numbers remains a concern and highlights that many who would potentially benefit from modern lifetime mortgage options are simply not accessing them.
The sector must engage with the recent FCA discussion paper which looks to explore how later life lending can move from a niche to a norm in order to support people’s finances in retirement and boost the economy.
In the meantime we urge all advisers to ensure that all options are considered for over 50s customers with referrals to trusted specialists in place to support good outcomes for all needs and circumstances.”
Lorna Shah, Managing Director, Retail Retirement, L&G commented:
“These figures suggest equity release is being seen as a more mainstream product for people looking to achieve their later-life goals. L&G data found that home improvements remain the most popular use, while fewer customers are using it to pay off debts.
As a lender, we work closely with advisers and the broader industry to ensure customers make informed choices based on their personal circumstances. While not suitable for everyone, it’s important to have a holistic conversation around financial planning in retirement; considering property wealth amongst other assets and investments.”
Simon Webb, managing director of capital markets and finance at LiveMore, comments: “Today’s data from the Equity Release Council reveals a slight decline in equity release lending compared to the previous quarter. Nonetheless, the market remains on an upward trajectory year-on-year, with 14,404 new and existing customers unlocking £636 million of housing wealth.
It’s worth noting, however, that these figures relate solely to equity release – just one component of the wider later life lending landscape, which itself is experiencing robust growth. UK Finance data shows that later life lending reached a total of £6.1 billion in Q1 2025, marking a 42.6% increase from the same period last year. At LiveMore, we’ve seen mortgage applications rise by 132% and completions by 58% across all products between January and June 2025, versus the previous year. This growth reflects our continued innovation and the broad range of mortgage products we offer.
Later life lending goes beyond equity release, encompassing a wide variety of options such as Retirement Interest Only, standard interest-only, capital and interest repayment, and term-based mortgages – all designed to reflect the changing financial needs of over-50s. As more borrowers become aware of the breadth of choice available to them, it stands to reason that equity release may represent a smaller proportion of overall later life borrowing. At LiveMore, we provide a comprehensive suite of later life mortgage products – including equity release – empowering older customers to make fully informed decisions with confidence and clarity.”
Richard Pike, chief sales and marketing officer at Phoebus: “While equity release lending dipped slightly quarter-on-quarter in Q2 2025, the year-on-year growth points to continued confidence in this segment of the market. The increase in average loan amounts and the growing popularity of flexible products like drawdown reflect how equity release is evolving to meet more complex customer needs.
As the data shows, economic conditions and policy changes – including stamp duty reforms and seasonal factors – are having an impact on borrowing patterns across the board, not just in the later life market.
In a more challenging lending environment, reducing operational costs and increasing efficiency through automation is more important than ever. At Phoebus, our technology is designed to support complex lending scenarios while driving down the cost to serve – giving lenders the agility to adapt to market trends and continue offering the flexibility today’s borrowers expect.”
