Drawdown equity release experiences 11 per cent rise in Q1
Drawdown, the most popular type of equity release, has seen an 11 per cent increase, according to findings from Key Retirement Solutions (KRS).
>Drawdown equity release products, which allows homeowners to access their equity in stages similar to having a monthly income, accounted for 66 per cent of all equity release sales; an increase of 11 per cent against its 55 per cent share of the market throughout the whole of 2011.
Equity release is growing in popularity nationwide with half of the UK regions experiencing growth in the total number of plans sold. The North experienced the largest increase (65 per cent) whilst the East Midlands saw a rise of 53 per cent.
With more and more homeowners looking for ways to subsidise depleted savings and poor pension provisions in light of the recent financial climate, drawdown equity release is being increasingly viable.
The investigation by KRS found home and garden improvements maintain its position as the most popular use of equity release funds (57 per cent). However more people are using the money obtained through equity release to repay debts (33 per cent) than go on holiday (31 per cent) highlighting necessity is now a driving force in equity release activity over material want.
Content correct at time of publication