This is a 10% increase in total lending when compared to Q2 2024 when it stood at £578 million and was driven by new lump sum mortgage customers taking on average £126,422 or 14% more than in Q2 2024 when it totalled £110,969.

The report highlights a 4% quarter on quarter drop in lending while the number of plans taken out remained static quarter on quarter, but there was a slight increase in the volume of new plans (+2%) and total plans (+1%), when compared to 2024.

Further advances – which make up less than 7% of the total amount borrowed – saw a 40% year on year increase in plans as existing customers chose to take advantage of house price increases and additional product flexibilities to borrow more.

A further 55% of customers in Q2 2025 decided on drawdown products which allow homeowners to release an initial amount of £65,856 in the second quarter and agree a reserve facility of an average of £53,338 in the second quarter for future use.

While there were more than 1,669 plans available for advisers to choose from at the end of June, the average APR was 7.24% in Q2 2025.

This is 6.64% higher than in Q2 2024 as gilt yields continued to rise as investors look for guaranteed returns amid global economic uncertainty.

Equity Release Council chair David Burrowes says: “Today’s figures show a resilient equity release sector which despite challenging economic headwinds, has recorded 10% year on year growth in borrowing with the total amount released in Q2 2025 reaching £636m.”

“Growth which continues to be driven by new borrowers accessing greater amounts of housing equity to manage debt, boost income and support their wider families.”

“While the equity release market faces some of the same challenges seen in the residential mortgage market, new lump sum and drawdown loans are up as customers take advantage of stable long-term house price growth to support their later life finances.”

“An approach which is only likely to grow in the future with Fairer Finance predicting that by 2040, over half of UK households (51%) are expected to require housing wealth to support their spending needs in later life and retirement.”

“The Later life lending market will inevitably grow as more customers look to their housing wealth to boost retirement income and meet care needs. We need to be ready and resilient to build upon strong advice standards, product innovation and a commitment to support a wider range of customers as this provides significant opportunities for the market.”

“We look forward to making the most of the opportunity presented by the recently launched FCA discussion paper into the ‘Future of the Mortgage Market’ which recognises the significant role of housing wealth in paying for retirement and that flexible lifetime mortgage products for older consumers are becoming ‘increasingly mainstream’.”

The council’s data is made up of aggregated figures collected from all UK equity release providers, encompassing business from advice firms across the market.