Equity release is breaking records! New figures reveal over-55s are withdrawing £5million of housing wealth every single day
Equity release lending has seen its biggest increase in 11 years with over-55s withdrawing a record £5million of their housing wealth every single day.
The Equity Release Council’s figures for Q3 2015 have revealed that lending is up by £68.3 million in the third quarter of 2015, compared with the previous quarter. The findings also show:
• The number of new plans has exceeded 6,000 for first time since Q4 2008
• Lending in Q1 to Q3 2015 exceeds the total for the whole of 2013
• Drawdown lending hit £266.8m in Q3 – the largest amount on record
• One-off lump sum lifetime mortgages also increased by 18% year-on-year to reach £183.5m, the largest figure since Q4 2006
The numbers demonstrate a rapidly growing number of people in or approaching retirement are looking to equity release to help boost their retirement incomes and meet later life expenses.
The drawdown figures are particularly telling, revealing tens of thousands of retirees are putting plans in place now to ensure they have a pot of money accessible should they need additional funds later down the line.
With headline-generating factors including the pension reforms over the last year, hundreds of thousands of interest-only mortgages coming to an end, plus savings not generating the level of income they used to, it’s no wonder the equity release market has seen a boom.
The development of innovative new equity release plans in recent years has also likely contributed to the rising figures. Lenders have brought exciting new plans to the table that enable homeowners to service all or some of the interest with regular or one-off payments; they have the ability to guarantee an inheritance for loved ones and can unlock a bigger percentage of property wealth based on poor health or life-limiting conditions, including diabetes and high blood pressure.
Anyone looking to release equity from their home should read Bower’s free independent guide to equity release first. Call 0800 411 8668 or by completing our short online request form
This is a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration. Bower Limited is Authorised and Regulated by the Financial Conduct Authority. Financial Services Register Number: 451607.