The Equity Release market is growing – what this means for you
The equity release market has grown in 2025 with a 10% increase in lending compared to 20241. So, with later-life borrowing on the rise, what does this mean for you if you’re aged over 55 and wondering how to plan for the future?
What is Equity Release – a quick overview
Equity Release is an increasingly popular way to access cash by releasing money from your property when you are over 55. There are two main types of policy – the more popular “lifetime mortgage”, which means you retain ownership of your property, and a “home reversion plan”, which means you relinquish some or all of your ownership. As a mortgage adviser, I specialise in lifetime mortgages.
Why is the equity release market growing?
The latest ERC quarterly review has recorded that £636m of equity was released from property in 2025; 10% more than the same period last year1. This growth was driven mainly by new customers but also existing customers revisiting their plans and taking out further advances1.
One of the things I’ve found most interesting about this report has been the growth in drawdown mortgages2. This means more people are choosing to take their funds in stages rather than taking a large upfront payment. In fact, in 2025, only around 50% of equity was taken compared to over 70% in 2021, indicative of a future-planning mindset into retirement2.
There are a few reasons that the Equity Release market is growing:
- Homeowners are definitely starting to feel more confident about the long-term stability of the housing market, making them more inclined to trust property wealth to fund their plans.
- People really need to access equity either for themselves or for their families. As we discussed in last month’s articles about saving for a deposit, economic uncertainty and the rising cost of living have brought our financial stability into sharp focus and put pressure on the limits of our income.
- Pension Pressures. The government recently launched a review into the state pension age3, and while nothing is set in stone, the planned timetable does suggest the age is likely to increase. This raises concerns for those already feeling the pinch of the rising cost of living. Relying on the equity in our property is likely to continue trending, especially when we consider that almost half of working adults are saving nothing toward their own retirement4.
- More flexible equity release options – There are now 1669 different Equity Release products on the market1, with more providers adding the flexibility of drawdown options than in previous years, such as Royal London5 and LiveMore6. This will attract a larger pool of customers previously put off by more rigid plan options.
So, if you’re considering equity release, what does this growth practically mean for you?
Why is this growth important for homeowners?
The growth of the Equity Release market isn’t just interesting for those working in the mortgage industry like me. There are several practical considerations for anyone planning their retirement and wondering if equity release is right for them:
- Increased competition – as more Equity Release products come onto the market, not only does that offer more options to customers, but over time it could lead to more consumer-friendly terms (e.g. cheaper policies, more flexibility etc)
- Responsible lending – increased competition doesn’t just lead to better options for consumers, it also drives more demand for regulated lenders and more scrutiny of the market by the ERC. Take a look at our article about the Equity Release Council and the assurances they offer.
- Intergenerational wealth planning – I’ve talked in previous articles about the importance of involving family upfront in later life financial planning, whether they’re likely to be the immediate recipient of property equity or not. Equity Release plans can have a direct impact on your loved ones, so it’s highly recommended to include them in any decisions you make involving your property.
- Importance of specialist advice – a wider choice of products can often lead to more subtle differences between policies. Getting the expert eye of a mortgage adviser who is a member of the ERC for full transparency and understanding of your options, is increasingly important.
So, whether you’re on the cusp of taking out an equity release policy or merely in the early stages of your research, the growth of the market should reassure you that you’re in good company. There is clearly more trust in the potential for our properties to ease financial pressure either for retirement plans, or for our families.
How can Downton Mortgages and Financial Services help?
I set up Downton Mortgages & Financial Services to give people confidence in their financial decisions. We do that by making your options clear and easy to understand. There are no silly questions, and we are on hand to help every step of the way from research through to application.
I’m one of a small number of mortgage brokers in the Bishop’s Stortford area who are registered with the Equity Release Council. When you work with us for equity release, you can have maximum assurance that you are getting gold standard advice.
For more information about our Equity Release services, please take a look at our website or get in touch to arrange a no obligation discussion over the phone.
Sources
1 Equity Release Council – Q2 Lending Figures
2 Equity Release Council – Full Report
3 Age UK – Changes to State Pension Age
4 Government UK – Retirement crisis
5 Royal London enhances principal equity release product
6 LiveMore revamps equity release products for older borrowers
Other blogs we’ve written on related topics
Do I risk losing my home if I take out equity release?
Considering Equity Release? Make sure you do these 5 things first
5 reasons you should work with a mortgage broker who is registered with the ERC
Important Information
The information contained within was correct at the time of publication, but is subject to change (November 2025).
Please note that for all mortgage products, terms and conditions apply. This information is a summary only. You will receive full documentation upon application, which sets out the terms, conditions, and limitations of lending provided.
A Lifetime Mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits and tax status. The impact of not servicing monthly interest payments on a Lifetime Mortgage is that the outstanding debt can grow rapidly, thus reducing the value of your estate.
For example, if the interest rate was 7% a year, a £50,000 loan would double to £100,000 after 10 years assuming no repayments are made.
This is an example for illustrative purposes only and personalised advice and recommendations should be sought from a qualified professional.
You are strongly advised to register a lasting power of attorney. This will allow your affairs to be managed by somebody else if your mental abilities significantly decline.
Your home may be repossessed if you do not keep up repayments on your mortgage.