According to data from Legal & General (L&G) Home Finance, there was a decline in new lifetime mortgage applicants using equity release to repay mortgage debt, which came to 20% in 2025, a decline from 31% in 2024.
The report noted that there was a decline in customers using property wealth for debt consolidation, falling slightly from 24% to 23% between 2024 and 2025.
Only 24% of new lifetime mortgage customers used equity release to pay into an emergency fund, which is up from 22% in 2024.
L&FG Home Finance said paying for home improvements was the most popular use for additional drawdowns, followed by support for everyday living expenses at 24%.
The report comes after the latest Equity Release Council (ERC) data, which showed that equity release lending grew by 11% to £2.57bn in 2025, with 40% using later life borrowing for home improvements.
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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.”
