Equity release sales boom in 2012 - Retirement - News - Moneyfacts

News

Equity release sales boom in 2012

Equity release sales boom in 2012

Category: Retirement

Updated: 18/01/2013
First Published: 18/01/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The equity release market experienced its most successful year in three years during 2012, as increased demand and interest from retired homeowners pushed sales of plans up by 10%.

Figures released by the Equity Release Council have found that the total value of the market rose to £925.7 million from £788.6 million in 2011, with the average value of an equity release plan standing at £52,191 last year, reflecting a 15-year high.

Figures for 2012 were given a boost by a highly successful fourth quarter, when the market value rose to £253 million, the highest quarter recorded since the end of 2008 at the height of the credit crunch.

Richard Eagling, editor of Investment Life & Pensions Moneyfacts, believes the heightened demand for equity release plans suggests that consumers are becoming more confident in their use of the products.

"The realization that equity release can be used to supplement retirement incomes that have been squeezed by falling annuity rates, disappointing pension fund returns and high inflation has clearly boosted demand," he said.

"With estimates indicating that more than a quarter of a million interest-only borrowers could reach retirement age by the end of the decade while still owing substantial sums on their mortgage, equity release is also likely to play an increasingly important role in enabling retirees to pay off existing debts."

What Next?

Learn about the options open to you and get your own personalised illustration with our equity release service

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

The gender savings gap is widening

There’s a gender gap when it comes to most things in the financial world, and unfortunately, the retirement arena is no different: even though more women than ever before are saving for retirement, the gap between men and women is widening.

The gender savings gap is widening

There’s a gender gap when it comes to most things in the financial world, and unfortunately, the retirement arena is no different: even though more women than ever before are saving for retirement, the gap between men and women is widening.

The gender savings gap is widening

There’s a gender gap when it comes to most things in the financial world, and unfortunately, the retirement arena is no different: even though more women than ever before are saving for retirement, the gap between men and women is widening.
 
Close