Equity Release lending more than doubles in 2 years25th April 2018 Latest News
First-quarter lending activity in the equity release market has more than doubled in the space of two years between 2016 and 2018, according to the latest quarterly lending figures1 from the Equity Release Council .
Homeowners aged 55+ released £870m from the value of their homes from January to March 2018. The trend shows how equity release has become a more widespread financial choice among the over- 55s as a way to use their property assets to help meet their financial needs.
Increased demand has been met by an increase in product options available to consumers and has in turn driven greater innovation with new flexibilities coming to market.
David Burrowes, Chairman of the Equity Release Council comments:
“Equity release provides financial help for consumers in a wide range of circumstances, including some looking to pay off interest-only mortgages and others wanting to make home improvements or adaptations and fund social care needs in the comfort of their own homes. It can also help financial issues across generations. Recent data showed the generational gap in homeownership is continuing to grow with 30-32-year-olds having a third of the property wealth that the same age group did ten years ago. Given that nearly 70% of all homeowner equity belongs to households aged 55 and over, it is inevitable that housing wealth will need to be used to help get the next generation onto the housing ladder. Equity release provides a valuable mechanism to provide this as a ‘living inheritance’.