Spending on home improvements remained the most popular reason for accessing property wealth in 2025, with 50% of new lifetime mortgage customers reinvesting equity in their property, data from L&G Home Finance shows.
Meanwhile, the data showed a significant drop in the number of new applicants using equity release to pay off mortgage debt (20%), compared to 31% in 2024.
There was also a slight decrease in the number of customers using their real estate assets to consolidate other debts, such as loans or credit cards, from 24% to 23%.
Of new lifetime mortgage customers, 24% used equity release to set aside money for an emergency fund, up from 22% in 2024.
Paying for home improvements was also the most popular use for additional withdrawals with 51% of customers, followed by 24% who used it to support daily living expenses.
This information follows Figures from the Equity Release Council published yesterday which showed that the market as a whole grew by 11% by 2025.
L&G Managing Director of Retail Pensioning Lorna Shah says: “Property can play an important role in supporting people’s retirement income and helping them achieve their long-term goals.”
“Our latest data shows that home improvements remain the most popular use for releasing home equity, while fewer customers are paying off their mortgage debt with the equity they have in their home.”