Homeowners release close to half a billion in H1 2012
Homeowners over the age of 55 have released £424m of equity in the first half of the year, according to the Equity Release Council (ERC).
This is an increase of £58m against the same period last year.
In the last quarter, from April to June, £225m of equity was released; the highest quarterly figure since Britain first hit the recession in 2009.
Ros Altmann is the Director General at Saga:
“These figures show that equity release is being increasingly used to help people find more money in these tough times. As people’s pensions have failed to deliver as expected and savings income has fallen so much, many older people have limited options for finding money.
“Also, as house prices are still high in many parts of the country, people want to help their children or grandchildren get on the housing ladder or perhaps pay university fees. The good news is that people are living to much later ages, so whereas their children might have expected to inherit their family home, that day is being delayed and they are now deciding it makes sense to release some of the capital now, rather than just waiting for an inheritance.”
Content correct at time of publication