New data from L&G’s Home Finance business1 reveals that spending on home improvements remained the most popular reason for accessing property wealth in 2025, with half (50%) of new lifetime mortgage customers reinvesting equity into their property.
Meanwhile, the data showed a significant fall in new applicants using equity release to repay mortgage debt (20%), down from nearly a third (31%) in 2024.
There was also a slight fall in customers using their property wealth to consolidate other debts, such as loans or credit cards, dropping from 24% to 23%.
Almost a quarter (24%) of new lifetime mortgage customers used equity release to set aside money for an emergency fund (up from 22% in 2024).
Paying for home improvements was also the most popular use for additional drawdowns (51%), followed by support for everyday living expenses (24%).
L&G’s data follows industry-wide stats from the Equity Release Council earlier this week which revealed that the market as a whole grew 11 per cent in 2025, reflecting how housing equity is becoming an increasingly important contributor to retirement planning.