More over-55s using equity release to clear debts and mortgages

1 in 4 unlocking their property wealth to reduce financial burdens

Written in line with our editorial policy.

New data from equity release lender Pure Retirement has revealed that more people are unlocking the value in their homes to tackle debts and mortgage repayments. 

One in four (25%) of those taking out a lifetime mortgage in the last quarter did so primarily to clear borrowing – a record high compared to both the previous quarter and the same time last year (both at 23%).

For the first time, repaying the mortgage and other debts has overtaken home improvements as the most common reason for releasing equity, with the latter making up 23% of cases in Q4 2024. 

Meanwhile, holidays remain a steady favourite, with one in ten (10%) using their funds for travel, unchanged from previous data.

Other popular reasons include gifting money to loved ones and purchasing a car, though both saw a slight dip in numbers.

More homeowners opting for flexibility of drawdown

The figures also suggest more homeowners are choosing drawdown lifetime mortgages, which let them access funds in stages rather than as a lump sum. Drawdown plans accounted for 51% of Pure Retirement’s new business last quarter, similar to the previous three months but up from 44% a year earlier.

This growing popularity could be due to several factors. Some homeowners may prefer to release just enough cash now to clear a mortgage or other debts, keeping future funds in reserve. Others might take an initial lump sum to see them through, while waiting for potential interest rate cuts before withdrawing more.

With the Bank of England reducing rates three times between August 2024 and February 2025, drawdown lifetime mortgages offer flexibility for those watching the market. Homeowners can secure an initial sum at today’s rates while keeping the option to access more later, potentially at a lower cost.

A changing equity release landscape

Paul Carter, chief executive of Pure Retirement, commented: “The latest findings continue to demonstrate that the lifetime mortgage customer is constantly evolving, and that as an industry we need to remain proactive in identifying these trends and similarly evolving with them to continue offering effective lifetime mortgage solutions that meet a range of needs.”

With more homeowners looking to manage debt in later life and a growing demand for flexible solutions, equity release continues to play a key role in retirement planning for many over-55s.

Speak to a specialist

To learn more about equity release and find the best product for your needs, speak to one of our selected equity release advisers. As well as searching for the best equity release rates and product for your needs, they can answer your questions and explain everything you need to know, including how a plan will reduce the value of your estate.

Get a free quote online or talk to one of our friendly consultants by calling 0808 178 3055 or request a call back.

Think carefully before securing other debts against your home.

Source

One in four (25%) of those taking out a lifetime mortgage in the last quarter did so primarily to clear borrowing: One in four releasing funds to repay debt and mortgage. Mortgage Finance Gazette. Accessed 11 March 2025.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn