Equity release sales soared by 44% in the first six months of 2017 reveals new data, with almost 100 retired homeowners a day having taken equity release plans and cashing in £1.25 billion of property wealth.
The study highlights that this is a new record high for the equity release market with more property wealth being released in the first half of 2017 than the whole of 2013 (when the market was worth £1 billion).
Key Retirements’ Half Year Equity Release Market Monitor shows that:
- total equity plan sales grew to 17,656 (an increase from 12,246 in six months);
- the total property wealth released climbed from £934.378 million to £1.246 billion;
- the average pensioner took £70,625 from their home with almost a third (32%) using some or all of the money to pay for holidays;
- others released equity to fund home improvements, help out family, and pay off credit card and mortgage debts.
A spokesperson at Key Retirement said that the equity release market is making a major contribution to retirement standard of living: “More property wealth was generated for pensioners in the first six months of this year than all of 2013, demonstrating how rapidly the market is expanding as record low rates drive more competition to the benefit of customers”.
Steve Bradley, MD at insurance specialists UKinsuranceNET says: “These latest statistics support what we have noticed about our customers, with several of those who had an interest only mortgage using equity release to pay off some or all of the original debt.
“And as we reported recently, the new pensions freedoms means that the over-55s are in better financial shape than ever, with a disposable income up by 5.1% enabling them to enjoy long stay holidays and new experiences”.