- Canada Life reveals top motivations for releasing equity in 2026 so far
Canada Life, one of the UK’s leading retirement providers, routinely questions its prospective home finance customers to understand their reasons1 for obtaining a lifetime mortgage.
New data from the first half of 2026 reveals that home adaptations and improvements remains the top reason for releasing equity, with 43%2 of customers citing this as their primary motivation.
There has been an upward trend of customers releasing equity to clear an existing mortgage this year, with 30% of applicants citing this purpose in H1 2026, up from 27% in full year 2025. The proportion of customers citing this reason also rose quarter on quarter, from 27% in Q1 2026 to 32% in Q2 2026. However, this remains below the peak seen five years ago, when almost half of customers (46%) were releasing equity to clear their mortgage.
Intergenerational gifting continues to be a core priority for borrowers, although volumes have moderated compared to last year. Gifting to family accounted for 15% of applications in H1 2026, down from 19% in full year 2025, as more customers redirect housing wealth towards clearing mortgages, consolidating debt and strengthening their overall financial position. Despite easing this year, gifting to family remains elevated from previous years – accounting for 11% of applications in 2022 and 10% in 2023.
Use of equity release for discretionary spending such as holidays has also moderated. In the first half of 2026, 21% of customers cited holidays as a key reason, down from 26% in full year 2025.
Similarly, other discretionary uses, including car purchases and additional property purchases, have fallen back compared with last year’s data, as customers refocus on essential needs and long-term financial security.
Commenting on the data, Sadna Zaman, Home Finance Proposition Manager, Canada Life, said:
“Home adaptations and improvements remains the most popular reason for releasing equity, with customers using lifetime mortgages to help fund changes that allow them to stay in their own home and enhance their quality of life in retirement.
"The data also shows that appetite for discretionary spending on things like holidays has cooled in the first half of this year amidst ongoing cost-of-living pressures and market uncertainty. Instead, customers have increasingly been looking to build financial resilience by consolidating debt, building an emergency fund, or clearing an existing mortgage.
“The wide variety of reasons underlines the flexibility of equity release as a solution, and the importance of careful, tailored advice. With comfort, financial security and intergenerational planning all competing, advisers have a crucial role in helping clients weigh these different priorities and show how property wealth can fit into a broader, holistic retirement strategy.”
Top reasons for loan
|
Rank |
H1 2026 |
Percentage of total applications for lifetime mortgages |
Full year 2025 |
Percentage of total applications for lifetime mortgages |
|
1 |
Home adaptations or improvements2 |
43% |
Home adaptations or improvements2 |
43% |
|
2 |
Clear existing mortgage |
30% |
Clear existing mortgage |
27% |
|
3 |
Day-to-day living |
24% |
Day-to-day living |
27% |
|
4 |
Consolidate debt |
22% |
Holidays |
26% |
|
5 |
Emergency fund |
22% |
Emergency fund |
21% |
|
6 |
Holidays |
21% |
Consolidate debt |
21% |
|
7 |
Gifting to family |
15% |
Gifting to family |
19% |
ENDS
Notes to editors
- Canada Life, 2026. Reasons for loan given for initial advance applications. Customers were able to choose multiple options for their reasons for loan
- Includes two separate reasons. Home adaptations for comfort/safety and Home Improvements (e.g green/efficient living)
Press enquiries:
Katie Ormrod, Canada Life, 07834 740227, katie.ormrod@canadalife.co.uk
About Canada Life:
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a Canadian headquartered, international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Through its subsidiary companies, Great-West Lifeco operates in Canada, the United States, and Europe. Great-West Lifeco trades on the Toronto Stock Exchange under the ticker symbol GWO and is a member of the Power Corporation group of companies.
Canada Life Limited began operations in the United Kingdom (UK) in 1903 and provides UK individuals and businesses with a range of retirement, investment, insurance and wealth solutions. Canada Life offers individual annuities, pension de-risking solutions, home finance, estate planning and investment options, and workplace protection products.
Canada Life Limited (no.973271) is registered in England and Wales, authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Stonehaven UK Limited (no.05487702), trading as Canada Life, is registered in England and Wales and is authorised and regulated by the Financial Conduct Authority. Canada Life International Limited (no.033178C) and CLI Institutional Limited (no.108017C) are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance (Ireland) DAC (no. 440141) and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland.
Canada Life Asset Management is the brand for investment management activities undertaken by Canada Life Asset Management Limited (no.3846821), Canada Life Limited and Canada Life European Real Estate Limited (no.03846823). Canada Life Asset Management Limited is authorised and regulated by the Financial Conduct Authority.
Please note that while Canada Life Limited and Canada Life Asset Management Limited are regulated as stated above, property management and the provision of commercial mortgages are not regulated activities.
www.canadalifeassetmanagement.co.uk