Derin Clark

Derin Clark

Online Reporter
Published: 28/10/2019

Between July-September there was a sharp increase in the number of over-55 year olds releasing equity from their property, figures from the Equity Release Council reveal.

According to the figures, this period saw an 8% rise in equity release activity, with £11m of property wealth unlocked each day during these three months alone. The figures also showed that there were 11,419 new equity release customers between July-September, which was a 6% increase compared to the previous three months.

There were a wide range of reasons why people are choosing to unlock money from their properties via equity release, including supplementing pension incomes, providing a ‘living inheritance’ to family, making home improvements or age-related adaptations, paying off existing mortgages or other debt, and meeting other regular or one-off expenses.

What is equity release?

Equity release is an option for those over the age of 55 to unlock equity from their house by borrowing against the value of their home, which can be up to 60% of the value of the property. The loan generally does not need to be repaid in the borrower’s lifetime, so repayments are not required, but those thinking about equity release must seek independent financial advice before doing so to make sure it is the right option for their personal circumstances.

David Burrowes, chairman of the Equity Release Council, said: “As a nation with an ageing population and a growing need to support longer lives, it is important not to overlook property wealth in modern retirement planning conversations. Today’s equity release market is offering new solutions to fund later life, by combining rigorous consumer protections with more product choices and flexibility to help people meet their financial needs and goals.

“The result of buying property and making mortgage payments during their working lives is that bricks and mortar become many people’s single biggest financial asset when they reach later life. Industry, regulators and government must continue to promote and encourage lifelong savings habits and support consumers to take a joined-up approach to later life planning. One that takes a holistic view about consumer choices, needs and outcomes and considers all wealth and assets into account.”

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 Any products featured may be withdrawn by their provider or changed at any time.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy