Data from Legal & General’s (L&G’s) Home Finance business found a shift in how people are using equity release, with fewer homeowners using it to clear debts.
The number of new customers using their property wealth to pay off an existing mortgage fell from 31% to 19% between H1 2024 and H1 2025.
The share using it to pay off other debts, such as loans or credit cards, also dropped from 25% to 23%.
Instead, more customers used equity release for home improvements and to support family.
Half of customers (50%) accessed property wealth for home improvements, while 18% used it to gift money to family members.
Mike Batty, product and proposition director, home finance at Legal & General, said: “Property wealth continues to be a useful tool for homeowners looking to fund later life and help achieve longer term goals.
“It’s encouraging to see people turning to the money tied up in bricks and mortar to improve their quality of life.
“As a lender, we continue to work with advisers and the wider industry to ensure the best outcomes for people looking to benefit from accessing their property wealth.”
Batty added: “While not suitable for everyone, lifetime mortgage solutions can be an important consideration as part of a holistic approach to financial planning.”
