After its exponential increase in popularity throughout 2017, Equity Release shows no signs of slowing down in 2018. Over a quarter of all pensioners are now pursuing Equity release; Q1 has shown that 26% of over 55s are choosing Equity Release up from 22% previously.
£777 million has been released from Equity in Q1, growing 23% on the previous year. The average customer released £74,000, with Londoners being able to release the most on average of £128,400. But what are people actually using these extra funds for?
What are people using Equity Release funds for?
According to Key Retirement ‘gifting is a major motivation for Equity Release’. The market has become so competitive now that better rates are available meaning an added incentive to release funds.
63% of customers are choosing to use their Equity to make home/garden improvements in their own property and 31% of these were also able to pay for a holiday. The amount of Equity available, especially for places such as London, allows customers to use their funds to pay off accrued debts such as mortgages or credit cards, something we at Browns have seen our own clients do.
If you are considering Equity Release or would like any further information, please call one of our Equity Release team on 01277 636 426 or 01268 565 769.