Older householders unlocked £636 million in property wealth with 14,404 new and returning clients in Q2 2025, because the fairness release market continued its year-on-year growth, the Equity Release Council newest report reveals.
This is a ten% improve in whole lending when in comparison with Q2 2024 when it stood at £578 million and was driven by new lump sum mortgage clients taking up common £126,422 or 14% greater than in Q2 2024 when it totalled £110,969.
The report highlights a 4% quarter on quarter drop in lending whereas the variety of plans taken out remained static quarter on quarter, however there was a slight improve within the quantity of new plans (+2%) and whole plans (+1%), when in comparison with 2024.
Further advances – which make up lower than 7% of the entire quantity borrowed – noticed a 40% yr on yr improve in plans as present clients selected to make the most of home worth will increase and extra product flexibilities to borrow extra.
An additional 55% of shoppers in Q2 2025 selected drawdown merchandise which permit householders to release an preliminary quantity of £65,856 within the second quarter and agree a reserve facility of a mean of £53,338 within the second quarter for future use.
While there have been greater than 1,669 plans accessible for advisers to select from on the finish of June, the common APR was 7.24% in Q2 2025.
This is 6.64% larger than in Q2 2024 as gilt yields continued to rise as buyers search for assured returns amid international financial uncertainty.
Equity Release Council chair David Burrowes says: “Today’s figures present a resilient fairness release sector which regardless of difficult financial headwinds, has recorded 10% yr on yr growth in borrowing with the entire quantity launched in Q2 2025 reaching £636m.”
“Growth which continues to be driven by new debtors accessing better quantities of housing fairness to handle debt, enhance earnings and assist their wider households.”
“While the fairness release market faces a few of the identical challenges seen within the residential mortgage market, new lump sum and drawdown loans are up as clients make the most of steady long-term home worth growth to assist their later life funds.”
“An strategy which is barely more likely to develop sooner or later with Fairer Finance predicting that by 2040, over half of UK households (51%) are anticipated to require housing wealth to assist their spending wants in later life and retirement.”
“The Later life lending market will inevitably develop as extra clients look to their housing wealth to spice up retirement earnings and meet care wants. We must be prepared and resilient to construct upon robust recommendation requirements, product innovation and a dedication to assist a wider vary of shoppers as this offers vital alternatives for the market.”
“We look ahead to benefiting from the chance introduced by the not too long ago launched FCA dialogue paper into the ‘Future of the Mortgage Market’ which recognises the numerous position of housing wealth in paying for retirement and that versatile lifetime mortgage merchandise for older customers have gotten ‘more and more mainstream’.”
The council’s information is made up of aggregated figures collected from all UK fairness release suppliers, encompassing enterprise from recommendation corporations throughout the market.
