New data from L&G Home Finance suggests that spending on home improvements remained the top reason for accessing property wealth in 2025, with half of new lifetime mortgage customers reinvesting equity into their homes.
Meanwhile, the data also showed a significant fall in new applicants using equity release to repay mortgage debt (20%), down from nearly a third (31%) in 2024. The percentage of customers using their property wealth to consolidate other debts, such as loans or credit cards, remained steady (2024: 24% and 2025: 23%).
Almost a quarter (24%) of new lifetime mortgage customers used equity release to set aside money for an emergency fund, slightly up from 22% in 2024.
Paying for home improvements was also the most popular use for additional drawdowns (51%), followed by support for everyday living expenses (24%).
L&G’s data follows the publication of industry wide figures from the Equity Release Council earlier this week, which revealed that the market as a whole grew 11% in 2025. This, the organisation said, reflects how housing equity is becoming an increasingly important contributor to retirement planning.
Lorna Shah, managing director of Retail Retirement at L&G, said:
“Property wealth can play an important role in supporting people’s retirement income and helping them meet their long-term goals.
“Our latest data highlights that home improvements remain the most popular use for equity release, while fewer customers are paying off mortgage debts with the equity they have in their home.
“As a lender, we work closely with advisers and the broader industry to ensure that people looking to access property wealth make informed choices, and give proper consideration to all of the options available to them.”
