Equity release lending at record levels
3 April 2019 • 55+ Equity Release news
The final three months of 2018 broke through new records in equity release lending, according to the Equity Release Council, which represents 95% of the equity release market and which works to protect over 55 equity release plan holders and ensure high standards within the industry.
£136 of housing wealth was unlocked every second in the UK between October and December – nearly matching the weekly state pension amount of £164. An unprecedented £1.08 billion was released by homeowners aged 55 and over during the same period – taking the total amount released across 2018 to a record breaking £3.94 billion, up 29% year on year.
More than half of the 83,000 over 55 customers taking out equity release products had never done so before, with 65% of new customers choosing drawdown products, with the remaining 35% opting for lump-sum products.
Continued growth to come
‘The amount of money being borrowed by homeowners aged 55 and over through equity release shows that this is now an integral part of retirement finances,’ commented Jan Johnson, director of 55+ Equity Release. ‘Older homeowners are also enjoying more choice and control, with more equity release products on the market than ever before, offering a wider range of features and flexibility. The greater choice, combined with the realities of retirement finances, means we expect to see continued growth in the equity release sector across 2019.’