Skip to content
Master Your Financial Future — Master Your Finances — Master Your Money — Financial Insights Unveiled

Equity release lending falls 9% in Q1 2026 as market cools

A sharp 9% drop in equity release lending signals a rocky start to 2026. Could rising enquiries hint at a coming rebound for older borrowers?

,   and  Administrator
1 min read
The image shows a line graph on a white background with text that reads "M4 Money Stock Break...
The image shows a line graph on a white background with text that reads "M4 Money Stock Break Adjusted in the United Kingdom". The graph displays the inflation and consumer prices of the UK.

Equity release lending falls 9% in Q1 2026 as market cools

Equity release lending saw a notable decline in the first three months of 2026. Total volumes dropped by 9% from the previous quarter, reaching £574 million. The market also recorded fewer customers and smaller average loans compared to earlier periods. Lifetime mortgages dominated the sector, making up over 99% of all equity release lending in Q1 2026. However, overall activity slowed, with customer numbers falling to 12,958—a 14% decrease from the same period in 2025. New plan volumes also declined by 8%, totaling 4,868.

Despite the downturn, some firms reported positive signs. Nearly half observed an increase in enquiry volumes during the quarter. Meanwhile, 38% of companies saw a rise in applications, suggesting pockets of growing interest. Looking ahead, optimism remains among lenders. Around 46% of firms expect enquiries to pick up in the second quarter, while half anticipate a rise in applications. Average loan sizes also eased, indicating a shift in borrowing patterns.

The equity release market faced a slower start to 2026, with lending, customer numbers, and new plans all down. Yet, with nearly half of firms forecasting higher demand in the coming months, the sector may see a rebound. The dominance of lifetime mortgages continues, shaping the landscape for older borrowers.

Read also:

Related

Latest