Equity release activity breaks £230 million for Q1 2013
Over £230 million was taken out by homeowners through equity release during the first three months of the year, latest figures have revealed.
Whilst the number of equity release plans rose by just 3 per cent, the value of these loans soared by 17 per cent. The average amount released is now £55,985, up from £49,069 for the same period last year.
The activity has prompted calls from equity release supporters for the government to endorse the product and highlight its capability in helping asset-rich, cash-poor pensioners enjoying a better retirement.
Richard Espley is the Head of Equity Release at Goldsmith Williams:
“This significant increase in the value of equity release plans suggests the financial need for retirees is growing.
“With predictions that 1.6 million pensioners are at risk of income poverty it is essential they are made aware of the financial options available to them. Equity release allows them to make use of their biggest asset – their property – and ease their financial struggle in retirement.”
Content correct at time of publication