Equity release lending rockets to record high
The number of homeowners taking out an equity release plan reached record levels for the second month in a row in November, according to the latest figures from Responsible Equity Release.
The number of homeowners taking out equity release plans in November was up 1.2% on October. Over the past quarter (September to November 2017), the number of equity release plans taken out was 20.9% higher than the previous three months.
The equity release provider also found that the average amount of equity released by individual homeowners last month hit an all-time high of £85,946, up from £70,851 in October – a rise of 20.9%.
Total equity released over the past quarter (September to November 2017), was up more than a quarter (25.3%) on the previous quarter.
In London, despite concerns over falling house prices, homeowners released more than £170,000 on average in November, with the total amount of equity released 41.8% up on October.
Steve Wilkie, managing director of Responsible Equity Release, said: “Retirees aren’t so much the older generation as the forgotten generation. They’ve been left to fend for themselves when it comes to their finances, having to swallow a decade of stagnant savings growth. With rising living costs, many are left with very little income to enjoy their latter years.
“This is why thousands of retirees are using their homes to provide a much-needed income boost. The house has become an asset that can work during their lifetime, rather than being simply being passed down to future generations. And the equity release industry has listened and evolved to provide a retirement solution that fits.”