Over-50s use equity releases to pay off their average debt of thirty thousand pounds

As homeowners in their 50s look for ways to use years of rising home prices to settle midlife debts, equity release is on the rise

According to recent research, many Brits are carrying debt into their midlife years and are increasingly thinking about equity release as a way to deal with being asset rich but cash poor.

According to SunLifes Life Well Spent 2025, nearly half (45%) of people over 50 are still managing debt, with London and the South East experiencing the most financial strain.

Homeowners over 50 have an average remaining balance of 33,590, compared to an average of 23,799 for those under 50.

Thirteen percent of homeowners over fifty are thinking about equity release as a means of paying off these debts.

By taking out a loan against the remaining property equity, equity release allows you to access funds that are locked up in your house. Separate data from the Equity Release Council indicates that the process is growing, with withdrawals through equity release increasing by 4% annually.

According to the 2025 SunLife report, individuals who released equity unlocked an average of 69,982, with 44% using the money to upgrade their homes and 36% using it to pay off debt. 76% of respondents said they were happier as a result of these financial improvements.

SunLife CEO Mark Screeon stated: "Many people over 50 have worked hard for decades and still have some debt. They may find it difficult to enjoy their planned retirement due to ongoing financial obligations and the growing cost of living.

"Equity release may provide some homeowners with a useful and empowering means of releasing a portion of the funds secured by their property to settle debts, provide for their families, or just live more comfortably. A "

How much debt are people over 50?

The largest burden continues to be mortgage debt. Many people find themselves paying off their homes well into retirement as a result of rising interest rates driving up mortgage rates.

According to the report, people over 50 have an average mortgage balance of 67,538 and make 842 monthly payments.

Additionally, one in ten people over 50 have personal loans (5,793), an additional 8% have overdrafts (1,575), and nearly one in three (30%) have credit card debt (3,922 on average).

Rising auto financing costs, which 6% of people over 50 are dealing with, are one of the largest out-of-mortgage expenses. These costs currently average 11,375 per borrower, which is 1,393 more than the previous year's average.

Advantages and disadvantages of equity release.

Equity release can give people over 55 a way to pay off long-standing debts, support their families, or augment their income while still living in the house they love.

However, there are drawbacks as well, such as the potential for debt accumulation and a decrease in the amount of property wealth that can be transferred to surviving family members.

A lifetime mortgage, the most common type of equity release, is technically a loan but typically has no repayment obligations until you pass away or enter long-term care. To keep the cost of borrowing low, it might be advised to make regular or ad hoc repayments when it is affordable.

According to the Sun Life report, homeowners who would consider equity release have indicated that they would typically look to unlock around 81,000, most frequently to pay off debt, increase income, or provide financial support for loved ones.

Some would use the money for long-awaited life experiences like travel and hobbies, or for home renovations.

Before choosing equity release, it is crucial to get financial advice from an FCA-regulated equity release adviser.

Benefits of equity release.

It is possible to ringfence a portion of your home's value for your beneficiaries so they can inherit it; affordability assessments are usually less burdensome than standard mortgages; it can provide a lump sum of tax-free cash for any purpose; it enables homeowners to access their property wealth without having to sell their home; in some cases, there are no ongoing monthly repayments required; and it offers the option to gift money before death, which lowers the value of your estate for inheritance tax purposes.

Cons of equity release:

The maximum percentage of equity you can release usually ranges from 20 to 60 percent of your home's value; you may receive less than market value for the portion of equity you release in your home; the lump sum you receive from equity release may affect your eligibility for certain means-tested benefits; it can be challenging to remortgage or move home once you have chosen equity release; and early repayment charges may apply if you repay the equity release loan sooner than anticipated.