Correct as of: Q3 2025 Equity Release Council data
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration.
The latest Equity Release Council (ERC) data has landed, and it paints a very clear picture of how older homeowners are navigating a pretty unforgiving economic climate. Rates have been volatile, household budgets are tighter than ever, and families are increasingly leaning on each other to get through it all.
And what are many older homeowners doing? Using their property wealth—carefully, deliberately, and often to support others.
Let’s break down what’s really going on.
A Market That’s Quietly Strengthening
Despite fewer overall plans being taken out in Q3 2025, total lending actually increased, nudging up to £639m, slightly up from Q2 and 4% higher than this time last year. Fewer customers, larger withdrawals… it’s a trend that speaks volumes.
People aren’t releasing equity on a whim. They’re doing it with purpose.
According to David Burrowes, Chair of the ERC, this quarter reflects a “resilient, confident and responsible market operating in challenging conditions.” Older homeowners are taking advice, weighing their options, and using property wealth to steady the ship — both for themselves and the people who rely on them.
And that’s exactly what we’re seeing on the ground too: thoughtful decisions, not impulse ones.
So What’s Driving This?
1. Bigger Loan Sizes
The standout shift this quarter? The size of withdrawals.
Across almost every measure — lump sums, drawdowns, reserves — average loan values jumped significantly.
A few highlights:
- Initial drawdowns up 27% quarter-on-quarter
- Drawdown reserves up 33%
- Lump-sum further advances up a huge 36%
This suggests people aren’t just dipping a toe in — they’re making meaningful financial decisions.
2. Rate Stability Is Helping Confidence
Feedback from advisers across the sector (and echoed in my own conversations) is simple:
People have been waiting to see where the Bank of England would land before pressing go.
We’ve had a long run of uncertainty. Now that things are finally looking more stable, clients are stepping off the sidelines and picking up their plans again.
3. Drawdown Still Leads the Way (Just)
Drawdown remains incredibly popular thanks to its flexibility — take what you need now, keep the rest available for later.
But interestingly, for the first time since late 2022, lump-sum lending overtook drawdown in Q3.
Not by miles, but enough to indicate that some homeowners are looking to solve immediate financial priorities rather than engage in long-term phased borrowing.
How Are Clients Using Equity Release Right Now?
Lorna Shah of L&G summed it up perfectly: housing wealth is becoming a “significant contributor to retirement planning.” And that’s exactly what I’m seeing.
Clients typically use equity release to:
- Carry out essential home improvements
- Support family members (the ‘Bank of Mum & Dad’ is alive and well)
- Manage day-to-day budgeting pressures
- Plan ahead for later-life needs
- Consolidate costs to simplify their financial position
The common thread? These are practical, well-considered reasons.
The Bigger Picture: A Mature, Stable Market
The ERC’s commentary this quarter feels broadly optimistic, and rightly so. Despite fewer plans being taken out, the market is showing:
- Responsible borrowing behaviour
- Stronger adviser-led decision-making
- Confidence in long-term property values
- Growing demand for flexible drawdown options
In short: the equity release market isn’t booming — it’s maturing.
Homeowners are taking their time, seeking advice, and making informed decisions. Frankly, that’s exactly the type of market you want when dealing with products designed for later life.
What This Means If You’re Considering Equity Release
If you’re a homeowner in your later years weighing up the idea of a lifetime mortgage, the Q3 numbers tell a reassuring story: people aren’t rushing, and they’re not being reckless. Instead, they’re using property wealth as one part of a broader retirement plan.
But — and it’s an important “but” — equity release is not right for everyone.
A full advice process is essential to understand:
- How it affects your long-term finances
- What it means for your estate
- The impact on means-tested benefits
- Whether alternatives might work better
- Whether a drawdown, lump sum, or hybrid approach suits your goals
The ERC figures highlight that the right clients, in the right circumstances, are using these products responsibly — not as a last resort, but as a strategic financial tool.
Final Thoughts
Q3 2025 shows a market that’s not only resilient, but increasingly thoughtful. Older homeowners are using equity release to support themselves and the next generation — and they’re doing it with careful planning and specialist guidance.
If you’d like to talk through your own situation, understand the numbers, or explore whether equity release could support your goals, I’m always happy to help.
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Risk Warning:
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.