Fewer using equity release to pay mortgage debt as home improvements dominate: L&G

Spending on home improvements remained the most popular reason for accessing property wealth in 2025, with 50% of new lifetime mortgage customers reinvesting equity into their property, new data from L&G shows.

Meanwhile, the figures show a significant fall in new applicants using equity release to repay mortgage debt (20%), down from nearly a third (31%) in 2024.

There was also a slight fall in customers using their property wealth to consolidate other debts, such as loans or credit cards, dropping from 24% to 23%.

Almost a quarter (24%) of new lifetime mortgage customers 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 drawdowns (51%), followed by support for everyday living expenses (24%).

L&G’s data follows industry-wide stats from the Equity Release Council earlier this week which revealed that the market as a whole grew 11% in 2025.

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.”