Equity release lending breaks all records
The equity release market grew significantly last year, as more older borrowers decided to unlock the equity in their homes to help fund their later years.
Lending shot up by 24%, with the total value of property wealth released reaching a record £1.71bn, according to research from Key Retirement. The total value in 2014 was £1.38bn.
Pensioners released £4.7m in property wealth a day last year, with the average homeowner receiving £72,000 each, an increase of 11% on the year before.
In London, the average retiree released around £128,000.
Sales of equity release plans rose by 11%, climbing to 23,747 sold in 2015.
This was largely due to the introduction of pension freedoms enabling retirees to have more choice over their income, the equity release adviser said.
The average property value of homeowners using equity release rose by 6% from £259,882 to £274,770 year-on-year.
Dean Mirfin, technical director at Key Retirement, said: “Property wealth is making a massive contribution to retirement income and planning with pensioners releasing a record £4.7m a day from their homes.
“Sales of equity release plans are rising strongly as well, underlining how pension freedoms have widened the choice of retirement income solutions with people now considering their home as part of their retirement portfolio.”