Equity Release Activity increases substantially as figures show £700 million value in one quarter
Equity release is now a key part of retirement planning for the over 55s. Equity release allows people who own their homes to utilise the value of the bricks and mortar to fund retirement.
Figures show a 36% increase in the value of lending in this sector in the 2nd quarter of this year compared to the 2nd quarter of last year.
Information released by the Equity Release Council shows:
- 2nd quarter 2017 equity release lending had a value of approximately £700 million;
- Over half of the 16,000 customers (8,454) took out new release plans, a 27% rise since the 2nd quarter 2016.
- An increasing number of returning customers took the option of drawing down further funds that was part of their plan. Drawdown products allow customers to release the value of their estate in smaller instalments, hence reducing the interest chargeable overall.
On publication of the figures, Nigel Waterson, Chairman of the Equity Release Council, said:
“The retirement income pressures facing many savers in the era of defined contribution pensions and low interest rates are encouraging homeowners to consider a wider range of financial options. Housing wealth – often people’s most valuable asset – is an important part of bridging the gap between the comfortable retirement people want and the retirement they can afford from their savings.”
The Equity Release Council regulates the industry and accounts for around 95% of activity in the UK. Browns Solicitors is a member of the Equity Release Council.
If you would like further information, legal advice and support, please contact our specialist Jane Elgar.