"The analysis, based on more than 1,000 customer cases agreed between Q2 2024 and Q1 2025 (data to 31 March 2025), reveals a decisive shift in how equity release is being used. Across the UK, the share of new plans taken primarily to repay an existing mortgage rose from 36% in Q2 2024 to 63% in Q1 2025. For many older homeowners, clearing the mortgage is now the main reason to tap property wealth."
"In 2025, Key Group customers in London released an average of £145,471 per plan. That figure is more than double the UK regional average and stands as the highest in the country by a wide margin. Compared to the year before, it represents a jump of more than £27,000 in the typical amount unlocked. Those numbers reflect both London's higher property values and the scale of the financial commitments its homeowners face."
"The underlying UK-wide data highlights how strongly mortgage repayment now dominates customer priorities. Over the period from Q2 2024 to Q1 2025, the share of plans primarily for mortgage repayment climbed from 36% to 63%. At the same time, more discretionary purposes fell sharply: home improvements dropped from 14% to 5%, property purchases from 7.9% to less than 2%, and vehicle purchases from 7.7% to 3.9%."
More than 1,000 customer cases agreed between Q2 2024 and Q1 2025 show a strong shift toward using equity release to clear mortgages. Nationwide, the share of new plans taken primarily to repay existing mortgages rose from 36% in Q2 2024 to 63% in Q1 2025. London customers released an average of £145,471 per plan in 2025, more than double the regional average and up over £27,000 year-on-year. Discretionary uses declined markedly, with home improvements, property purchases and vehicle purchases all falling significantly.
Read at London Business News | Londonlovesbusiness.com
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