19th May 2017
In the first three months of 2017, 8,604 equity release plans were sold - 58% up from the 5,447 sold in the same period in 2016. The value of these plans was also up - from £414 million to £633 million - a 53% jump. In this post Kevin outlines the huge growth in both equity release plans and their value since this time last year.
Analysts expect the numbers to keep rising in the months ahead, as more and more homeowners recognise the financial wisdom of releasing equity from their most valuable asset.
Further analysis of the figures suggests that interest-only borrowers are driving equity release business at present: an estimated 10,000 borrowers are set to come to the end of interest-only loans between every year between now and 2020, and it is probable that many of these will turn to equity release to clear their debt.
But, as usual, the reasons for accessing equity release remain many and varied. Figures show that most customers (62%) use it to fund home and garden improvements; 32% use it to finance holidays; and a further 30% utilise equity release to clear credit card and loan debt.
Whilst the reasons for taking up the benefits of equity release are manifold, its rapid expansion underlines the fact that record low rates for these plans are driving demand. Equity release is in the mix of every discussion that older homeowners are having about securing their financial future.
Equity release is the answer to so many financial questions. If you would like to know more about it, and see if it could be the right move for you, please book an appointment or request a call-back
We will be in touch as soon as possible to arrange a convenient time for a meeting, which is completely free of charge and without obligation.
I'll be in touch as soon as possible. If you'd rather call me in the meantime, please feel free to give me a call on 01489 45 45 45