Over-55s borrowing £113k from homes for retirement

More British homeowners over 55 are turning to equity release to fund their retirement, new figures show – with the average borrower taking out £113,779 from their home.

The Equity Release Council reported that between April and June 2026, the number of people using equity release grew by 4 per cent to 13,489. The strongest growth came from first-time users, with 5,307 homeowners accessing their housing wealth for the first time – a 9 per cent jump on the previous quarter.

If you’re not familiar with equity release, it’s a way for homeowners aged 55 and over to unlock cash tied up in their property without having to sell or move. You keep living in your home, and the loan is only repaid when you die or move into long-term care.

Why are more people doing this?

As pensions become smaller and savings stretch further, many retirees are looking for extra income. The Financial Conduct Authority now describes later-life lending as a “fourth pillar” of retirement planning – alongside pensions, savings, and investments.

What you need to know

Equity release isn’t a quick fix. Because interest rolls up over time, borrowing can become expensive – especially if you live a long life. This also reduces what you can leave to your children as inheritance.

Before taking out equity release, make sure you:

Get regulated financial advice. This isn’t optional – most providers require it.
Understand all the costs and how interest compounds over time.
Explore other options first, like downsizing or adjusting your spending.
Check if you’d qualify for any benefits you’re missing – sometimes a small income boost from benefits beats expensive borrowing.

What to do next

If you’re considering equity release, visit the Equity Release Council website for accredited advisers. You can also speak to StepChange (0800 138 1111) or Citizens Advice for free, impartial guidance on retirement planning.