Wealthy homeowners are driving growth in equity release

Who actually uses equity release in 2026

The most common assumption about equity release is that it is used by homeowners who cannot afford their retirement otherwise — a financial rescue product for people who have run out of options. The More2life Q2 2026 data tells a different story.

The average property value among new lifetime mortgage customers is £463,650, up 3.3% year-on-year. One in six new customers owns a home worth £700,000 or more. One in fourteen owns a home worth more than £1 million. These are not homeowners in financial difficulty. They are homeowners with substantial property wealth who are choosing to access part of it.

The industry commentary from More2life points to a broadening customer base, with more homeowners incorporating property wealth into retirement and estate planning as a deliberate financial tool — rather than arriving at equity release as a last resort.

Why homeowners with higher-value properties are using lifetime mortgages

For homeowners in their 60s and 70s with significant property wealth, a lifetime mortgage offers something that savings and investments often cannot: access to a large, illiquid asset without selling it or giving up the right to live in it.

The reasons wealthier homeowners are choosing equity release cluster into a few categories:

• Supplementing retirement income: a high-value property does not automatically mean high retirement income. Many homeowners are asset-rich but cash-flow constrained — their wealth is in bricks and mortar, not income-generating investments. A lifetime mortgage turns a portion of that property wealth into usable income or a lump sum, without disrupting the portfolio of assets they have built
• Gifting to family: releasing equity to give to children or grandchildren now — rather than leaving it as inheritance — is becoming an increasingly deliberate strategy. For homeowners with estates above the inheritance tax threshold, giving while alive and potentially outside the IHT window has financial logic beyond the emotional appeal of seeing the gift put to use
• Home improvements: funding significant works — adaptation for later life, extensions, or simply bringing a property up to the standard required for ongoing comfort — without depleting liquid savings or disrupting other financial plans
• Estate planning: for homeowners with complex estates, a lifetime mortgage can be part of a broader strategy to manage the distribution of wealth in a tax-efficient way, working alongside wills, trusts, and pension planning

None of these motivations require financial difficulty. They require property wealth, which is precisely what the More2life data confirms this segment of equity release customers has.

The misconception and why it matters

The lingering perception that equity release is a product for people who have no other options puts some homeowners off exploring it even when it could genuinely improve their financial position or allow them to do things they want to do.

If a homeowner with a £700,000 property is not considering equity release because they associate it with hardship, they are potentially overlooking a financial tool that a growing number of their peers — including those in similar financial positions — are using as a considered part of their retirement planning.

That does not mean equity release is right for every homeowner. It is a product with real costs and long-term implications that require proper consideration. But the starting point for that consideration should be an accurate understanding of who uses it and why — not a misconception built on how the product was perceived twenty years ago.

What this means if you’re considering your options

If you own a property with significant equity and you are in or approaching later life, understanding what equity release could look like for your specific property and circumstances is a reasonable step — not a signal of financial stress, and not a commitment to proceed.

A free, no-obligation illustration gives you a concrete figure based on your home’s current value and your age. From there, you can compare it to other options, discuss it with family, and take independent financial advice if you want to explore further. Our guide to what is equity release explains how lifetime mortgages work in plain terms. To understand the range of products available, types of equity release covers the main options. And for an initial sense of what the numbers could look like, how much could I release is a useful starting point.