How is Equity Release being used across the UK? And how you can help your Family
Recent research from Canada Life, as cited by MPA Magazine, shows a notable shift in how equity release is being used across the UK. MPA Magazine
1.)Gifting to family is rising.
The share of equity release applications used to support loved ones has risen from 13% in H1 2024 to 22% in H1 2025. MPA Magazine+2Intermediar
2.)Home improvements now top the list.
In 2025, 43% of applicants cited home adaptations or improvements as their reason, overtaking repayment of a mortgage, which fell to 27%. MPA Magazine+2canadalife.co.uk+2
3.)Everyday costs and buffers are more common.
Usage for day-to-day living rose from 20% to 27%, while emergency fund uses jumped from 9% to 21%. canadalife.co.uk+2mortgagerequired.com+2
4.) Overall lending growth.
The Equity Release Council reports a 10% year-on-year increase in lending from Q2 2024 to Q2 2025. Equity Release Council+3MPA Magazine+3MPA Magazine+3
Why this matters
These trends suggest homeowners are increasingly viewing equity release not just as a last-resort option — but as a tool to actively support family, maintain lifestyle, and improve their homes for longer-term comfort.
For many over-55s, equity release provides a flexible way to support loved ones financially while remaining in their home. By accessing a portion of the property’s value through a lifetime mortgage, homeowners can release funds when needed without having to sell or downsize. This approach allows families to share wealth across generations while maintaining stability and control.
Common ways clients use equity release to support family
What people are using equity release for (commonly)
1.) Gifting (first-home deposits, family support)
2.) Home improvements or adaptations
3.) Everyday living (supplementing income)
4.) Emergency financial buffer
5.) Mortgage repayment (still used, but less dominant)(It is a requirement to clear your mortgage when taking equity release).
Key considerations before you decide
1) It’s a loan secured against your home.
A lifetime mortgage is repaid (with interest) when you die or move into long-term care, usually from the sale of the property. Interest compounds if you don’t make payments, so the amount owed can grow quickly over time.
2) It will usually reduce your estate.
Gifting from released funds means less inheritance later. Some plans offer inheritance protection features, but these can affect how much you can borrow and the overall cost.
3) It can affect benefits.
Releasing cash may impact means-tested state benefits. We’ll check this as part of your advice journey.
4) Early repayment charges may apply.
If you repay early, you could face fees depending on the product rules.
Alternatives to consider
1.) Downsizing to release equity without borrowing
2.) Using savings/investments
3.) Retirement interest-only (RIO) mortgages (monthly interest payments required)
4.) Family-assisted mortgages (where appropriate)
5.) Doing nothing for now and revisiting later
We’ll lay out all viable options so you can make an informed decision.
How Retirement Solutions can help
At Retirement Solutions we provide whole-of-market advice across later life lending. We’ll:
1.) Assess whether equity release is right for you—or not
2.) Model the impact on your estate, benefits and future flexibility
3.) Involve your family (with your permission) in key discussions
4.) Compare lenders and features (including voluntary repayments, downsizing protection, and inheritance guarantees)
5.) Work alongside your solicitor to progress the case.
First appointment is free and without obligation. If equity release isn’t suitable, we’ll say so and explain why.
