More homeowners are releasing equity from their homes in order to improve their lifestyles in retirement as well as pay off outstanding mortgage debts.
According to research by equity release provider Key Retirement Solutions nearly £300 million was released from properties across the UK in the three months to October - 17% more than the previous three-month period.
So far this year retirees have released a total of £808.19 million from their homes – up 15% on last year's figures, with the industry on course for a record-breaking year.
Key Retirement's analysis also revealed that customers are, on average, releasing £57,286 from their properties – up 10% on the same three-month period in 2012.
59% of customers say they are using some or all of released funds to pay for home or garden improvements, while 23% said they used the cash to clear mortgage debts.
When equity release schemes were first launched in the 1980s the industry quickly earned itself a bad reputation. Back then the industry was unregulated and there were many horror stories of retired homeowners being charged sky high interest rates, meaning they faced an almost impossible struggle to pay off spiralling debts.
But the industry has completely changed since then and the products on offer now are very different to what was available 20 years ago.
Today the equity release sector is fully regulated, which means homeowners are completely protected from falling into negative equity.
Leading providers that offer equity release plans include Aviva, Bridgewater, Hodge Lifetime, Just Retirement, LV=, More 2 Life, New Life, Partnership, Retirement Plus and Stonehaven.
To find out more about equity release and the different plans available to you read our comprehensive guide
Remember, it is important to always seek independent financial advice when considering whether equity release is the right option.
Call today to find out more and receive a guide 01737 233462
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 Any products featured may be withdrawn by their provider or changed at any time.
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