Demand for equity release drawdown surges
13 February 2020
Bumper autumn for equity release
The equity release market was stronger during the third quarter of last year than in the preceding months, measured both by the number of new plans written and the amount of equity released by over 55-year-old homeowners.
The Market Monitor* reported that 11,772 plans were taken out, worth a total of almost £887 million, with an extra £369 million reserved for future use in the form of drawdown plans. This corresponds with a drop in the amount of property equity homeowners are opting to release, on average, for immediate use; down to £58,729 from £60,922 in the third quarter of 2018.
The advantages of drawdown equity release plans
“Drawdown plans give greater flexibility for over 55 homeowners,” commented the director of 55+ Equity Release, Jan Johnson. “The fact that three-quarters of people who chose to release equity from their property last year opted for a drawdown scheme shows that homeowners are increasingly looking for this flexibility when planning their retirement finances.
“The level of uncertainty last autumn may have helped shape the decision for some, but we think this is more than a short-term trend, and we expect to continue to explore drawdown plans with a growing number of our equity release clients.”
If you want to understand the different options for releasing equity from your property to help realise your retirement dreams, one of our equity release expects will be happy to guide you through the equity release maze to see whether it is an appropriate solution for you.