Homeowners over 55 are increasingly turning to their biggest asset – their home – to support family, boost retirement income, and reduce inheritance tax (IHT).
In the second quarter of 2025 alone, over-55s unlocked £636 million through equity release. That’s a smart, strategic shift in how people are planning their financial futures.
Why equity release is booming now
One of the biggest triggers? Inheritance tax changes. From 2027, pensions will be included in IHT calculations. For many, that’s accelerated the decision to pass on wealth sooner, rather than risk a larger tax bill later.
Instead of waiting, families are using lifetime mortgages and other later-life lending options to make gifts today – often when children and grandchildren need it most.
Gifting a living inheritance
Equity release is helping parents and grandparents:
- Fund deposits for first-time buyers.
- Gift money to support business ventures or education.
- Reduce the size of their taxable estate.
For many families, it’s about practical support now, not just financial legacies later.
Lifetime mortgages are more flexible than ever
Equity release products have evolved. Modern lifetime mortgages often include:
- Voluntary repayments – to help control interest roll-up.
- Drawdown facilities – only pay interest on funds when you need them.
- Inheritance protection – keeping part of your estate safe for beneficiaries.
This flexibility is why demand is expected to keep growing.
Later-life lending isn’t one-size-fits-all
While equity release is on the rise, it’s not the only option. Some borrowers reaching the end of interest-only mortgages in the early 2030s may be better suited to standard remortgaging or a Retirement Interest Only (RIO) mortgage.
That’s why advice matters. A holistic look at all the options – downsizing, remortgaging, equity release, or a mix – ensures the right fit.
Borrowing with confidence
Equity release can be a powerful tool, but it’s not for everyone. Things to consider include:
- Impact on means-tested benefits.
- Future care funding.
- The importance of documenting gifts properly.
- How withdrawals are timed in relation to interest rates.
Used carefully, unlocking property wealth can give families peace of mind – providing financial security today while keeping long-term goals intact.
Key Takeaway
Equity release and later-life lending are no longer “last resort” options. They’re becoming central to retirement and estate planning. With the right advice, homeowners can borrow with confidence, support their loved ones, and plan more effectively for the future.
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Important Information
- This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration.
- Your home may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
- Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
- This blog is for information only and does not constitute personal advice.