Half of new lifetime mortgage customers used property wealth to fund home improvements in 2025 according to new data from Legal & General’s Home Finance business.

The figures show that reinvesting equity into the home remained the most common reason for accessing property wealth, cited by 50% of customers last year.

Home improvements were also the most popular use of additional drawdowns, accounting for 51% of cases.

MORTGAGE DEBT DECLINE

The data also reveals a marked decline in the proportion of customers using equity release to repay mortgage debt. In 2025, just 20% of new applicants used equity to clear an outstanding mortgage, down from 31% in 2024.

There was a marginal fall in customers using property wealth to consolidate unsecured debts such as loans or credit cards, slipping from 24% to 23%.

“A quarter used equity release for an emergency fund.”

At the same time, almost a quarter (24%) of customers used equity release to set aside money for an emergency fund, up from 22% the previous year.

Spending on everyday living expenses was the second most common use for additional drawdowns, accounting for 24% of cases.

L&G’s figures follow data published earlier this week by the Equity Release Council, which showed the equity release market grew by 11% in 2025, highlighting the increasing role of housing equity in retirement planning.

INFORMED CHOICES

Lorna Shah, managing director of retail retirement at L&G, said: “Property wealth can play an important role in supporting people’s retirement income and helping them meet their long-term goals.

“Our latest data highlights that home improvements remain the most popular use for equity release, while fewer customers are paying off mortgage debts with the equity they have in their home.

“As a lender, we work closely with advisers and the broader industry to ensure that people looking to access property wealth make informed choices and give proper consideration to all of the options available to them.”