The latest report from the Stock Release Committee shows that older homeowners unlocked £636 million in the second quarter of 2025 with 14,404 new and returned customers as the stock issuance market continues to grow year-on-year.
This is a 10% increase in total loans in the second quarter of 2024, compared to £578 million, and is charged by new one-time mortgage clients on average £126,422 or 14% for £126,422, up from 14% in total, at the time when the total was £110,969.
The report highlighted that loans fell 4% in the quarter, while the number of planned plans remained the static quarter of the quarter, but the number of new plans (+2%) and total plans (+1%) increased slightly compared to 2024.
Further advances – accounting for less than 7% of total borrowings – the year of the program grew by 40% as existing customers choose to take advantage of rising housing prices and additional product flexibility.
Of the second quarter 2025 customers, 55% decided to use the initial amount for the next quarter to £65,856 and agreed to an average reserve of £53,338 for future use in the second quarter.
While there are more than 1,669 plans to choose from at the end of June, the average APR was 7.24% in Q2 2025.
This is 6.64% higher than the Q2 2024 Q2 as investors seek guaranteed returns amid global economic uncertainty and global economic uncertainty.
David Burrowes, chairman of the Equity Release Council, said: “Today’s data shows that despite challenging economic headwinds, the equity release industry has recorded 10% in lending in borrowing, with the total released amount in 2025 reaching £636 million.”
“Growth continues to be driven by new borrowers, thus gaining more housing interests to manage debt, increase income and support their wider households.”
“While the stock issuance market faces some of the same challenges in the residential mortgage market, new one-time payments and cumulative loans have increased as customers leverage steady long-term housing price growth to support their future life insurance finance.”
“This approach is only possible in the future to develop the approach, and a more equitable financing forecast that by 2040, more than half of the UK’s households (51%) are expected to need housing wealth to support their future lives and spending needs when they retire.”
“As more and more clients want their housing wealth to increase retirement income and meet care needs. We need to be prepared and resilient to establish strong standards of advice, product innovation and commitment to support a wider range of clients, as this provides a significant opportunity for the market and we need to be prepared.”
“We look forward to taking full advantage of the opportunities that the recently released FCA discussion paper brings to the ‘The Future of the Mortgage Market’, which recognizes the important role of housing wealth in paying retirement payments and that flexible lifetime mortgage products for older consumers are becoming “increasingly mainstream.”
The Commission’s data consists of a total of collected from all UK stock release providers, including from the market’s advisory companies.
