Home improvements and adaptations remain the most common reason homeowners choose to release equity from their property, new figures suggest.

Canada Life’s data for the first half of 2026 shows that 43% of lifetime mortgage applications included home improvements or adaptations as a reason for borrowing—unchanged from 2025.

For some homeowners, the money is being used to update kitchens and bathrooms or improve energy efficiency. Others are adapting their homes to make them safer, more comfortable and better suited to later life.

More homeowners are clearing mortgages

The figures also point to a growing focus on financial security.

Clearing an existing mortgage was cited in 30% of applications during the first half of 2026, up from 27% in 2025. The proportion increased further during the second quarter, reaching 32%.

Other frequently cited reasons included:

• Day-to-day living costs: 24%

• Consolidating existing debts: 22%

• Building an emergency fund: 22%

• Holidays: 21%

• Gifting money to family: 15%

The fall in family gifting—from 19% in 2025—may suggest that more homeowners are prioritising their own financial resilience amid continuing pressure on household budgets.

Is equity release the right way to fund home improvements?

Equity release can allow eligible older homeowners to access some of the money tied up in their property without having to move. However, it is a significant, long-term financial decision and will not be suitable for everyone.

With a lifetime mortgage, interest can build up over time and reduce the value of the estate left to beneficiaries. Releasing money may also affect entitlement to means-tested benefits and could influence future care or housing options.

Alternatives may include downsizing, using savings, taking a conventional or retirement interest-only mortgage, or exploring grants that may be available for essential adaptations.

The right solution will depend on your age, income, property, future plans and the amount you need to raise.

If you are considering equity release, a later-life mortgage or another way to fund home improvements, please get in touch. We can discuss your circumstances, explain the available options and help you make an informed decision.

Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. To understand the features and risks, ask for a personalised illustration.