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Equity release in 2025 to date

ended 10. June 2025

There were 38,510 new loans advanced to older borrowers in Q1, up 33.5 per cent year on year, according to industry body UK Finance. The value of this lending was £6.1bn, which was up 42.6 per cent compared with the same quarter a year previously.

There were 5,620 new lifetime mortgages advanced in Q1, up 11.1 per cent year on year. The value of this lending was £530mn, which was up 39.5 per cent compared with the same quarter a year previously.

Meanwhile, there were 339 retirement interest only mortgages advanced in Q1, up 19.4 per cent year on year. The value of this lending was £33mn, which was up 17.9 per cent per cent compared with the same quarter a year previously.

Lastly, residential Later Life loans in Q1 represent 7.6 per cent of all residential loans. BTL Later Life loans in Q1 represent 21.5 per cent of all BTL loans. Newspage asked experts for their views, below.

1 responses from the Newspage community

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Editor
Chris Barry
Director at Thomas Legal
The 30 year bond yield has been heading north as values drop. This increases product rates and in turn lowers the amount a client can borrow against their property. Whilst the demand for non essential equity release is declining as a result of higher rates. Essential releases are still popular as many clients need to fund their retirement plans and quite often can’t afford the repayments of a standard mortgage into later life. The outlook for the rest of the year looks fairly stable and the five year outlook looks brighter as interest rates are set to drop