Lending in 201712th February 2018 Latest News
Historic year for equity release as lending hits all time high
The total amount of housing wealth unlocked by over-55 homeowners reached £3.06bn in 2017 – the first time it has exceeded £3bn in a single year. Almost 67,000 customers unlocked part of their housing wealth to help manage their finances in later life.
Draw-down plans continue to be the most popular option for those initially exploring equity release. Over 2017 25,794 existing drawdown lifetime mortgage customers returned to dip into agreed reserves and 3,867 existing customers agreed further advances on either lump sum, drawdown or home reversion plans.
David Burrowes, Chairman of the Equity Release Council, commented:
“The record-breaking demand for equity release over the past year is testament to the fact more consumers are changing the way they plan financially for retirement, and taking a broader range of options into consideration……Property is, for many people, their largest asset and has the potential to play an ever-greater role in the future to meet the challenge of ensuring effective later life funding. I look forward to working with our members and industry, regulators and government across 2018 to build on what has been a breakthrough year for the sector.”