Older owners unlocked £636 million in property wealth with 14,404 new and returning prospects in Q2 2025, because the fairness launch market continued its year-on-year development, the Equity Release Council newest report reveals.
This is a ten% enhance in complete lending when in comparison with Q2 2024 when it stood at £578 million and was pushed by new lump sum mortgage prospects taking over 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 enhance within the quantity of recent plans (+2%) and complete 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 enhance in plans as current prospects selected to benefit from home worth will increase and extra product flexibilities to borrow extra.
An additional 55% of consumers in Q2 2025 selected drawdown merchandise which permit owners to launch an preliminary quantity of £65,856 within the second quarter and agree a reserve facility of a median of £53,338 within the second quarter for future use.
While there have been greater than 1,669 plans out there for advisers to select from on the finish of June, the common APR was 7.24% in Q2 2025.
This is 6.64% greater than in Q2 2024 as gilt yields continued to rise as traders search for assured returns amid world financial uncertainty.
Equity Release Council chair David Burrowes says: “Today’s figures present a resilient fairness launch sector which regardless of difficult financial headwinds, has recorded 10% yr on yr development in borrowing with the entire quantity launched in Q2 2025 reaching £636m.”
“Growth which continues to be pushed by new debtors accessing larger quantities of housing fairness to handle debt, increase revenue and assist their wider households.”
“While the fairness launch market faces among the identical challenges seen within the residential mortgage market, new lump sum and drawdown loans are up as prospects benefit from steady long-term home worth development to assist their later life funds.”
“An strategy which is simply prone 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 prospects look to their housing wealth to spice up retirement revenue 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 consumers as this gives vital alternatives for the market.”
“We sit up for benefiting from the chance offered by the lately 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 shoppers have gotten ‘more and more mainstream’.”
The council’s information is made up of aggregated figures collected from all UK fairness launch suppliers, encompassing enterprise from recommendation corporations throughout the market.
