Spending on home improvements remained the most popular reason for accessing property wealth in 2025, with 50% of new lifetime mortgage customers reinvesting equity into their property, L&G Home Finance data reveals.

Meanwhile, the data showed a significant fall in new applicants using equity release to repay mortgage debt (20%), down from 31% in 2024.

There was also a slight fall in customers using their property wealth to consolidate other debts, such as loans or credit cards, dropping from 24% to 23%.

Of new lifetime mortgage customers, 24% used equity release to set aside money for an emergency fund, up from 22% in 2024.

Paying for home improvements was also the most popular use for additional drawdowns with 51% of customers, followed by 24% using it as support for everyday living expenses.

This data follows Equity Release Council figures published yesterday which revealed that the market as a whole grew 11% in 2025.

L&G managing director of retail retirement Lorna Shah says: “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.”