Mortgage repayments now primary driver of equity release

New analysis of more than 1,000 Key Group customer cases agreed between Q2 2024 and Q1 2025 shows a marked shift in how UK homeowners use equity release. 

Over the period, the share of new plans taken primarily to repay an existing mortgage rose from 36% to 63%, indicating greater use of property wealth to stabilise household finances.

Discretionary uses fell sharply: home improvements fell from 14% to 5%, property purchases from 7.9% to less than 2%, and vehicle purchases from 7.7% to 3.9%. 

Londoners released an average of £145,471 per plan in 2025, more than double the UK regional average. That’s a jump of more than £27,000 on the year before, showing how London’s property market continues to fuel the largest equity withdrawals.

Two-thirds of customers split their release across more than one purpose. Around a third (31.6%) used their plan for a single purpose (commonly mortgage repayment or debt), 32.7% divided funds across two purposes, 21.6% across three, and 9.5% allocated funds to four or more priorities.

According to the latest Key Group data, the average customer is 69 years old, with 59% joint applications, and women dominating among single applicants.

Despite drawdown being more common by count, the average drawdown facility size has fallen, indicating larger initial draws and smaller contingency facilities.

Rachel East, senior director of later life advice at Key Equity Release, said: “Homeowners appear to be taking a pragmatic, two-part approach: using equity release first to secure essentials and ease immediate financial strain, while still setting aside modest sums for holidays, family gifts and other quality-of-life spending. It’s a shift from optional projects toward careful prioritisation."