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Equity Release

Over 23,000 homeowners unlocked property wealth in first three months of 2022

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
26/04/2022

Record numbers of older homeowners are looking to equity release to boost their income in retirement

More than 23,000 equity release customers cashed in on their property wealth in the first quarter of the year, according to figures from the Equity Release Council.

It found that the number of new and returning equity release customers reached a new quarterly high of 23,395 between January and March this year.

It takes the total of equity release customers since the start of the pandemic to 150,653 new and existing customers have been active during the pandemic, compared with 171,586 in the previous two years.

Total lending reached £1.53bn between January and March, up from £1.34bn in the last quarter of 2021. March was the busiest month for new plans agreed, with 4,560 completions.

The average first instalment of a drawdown lifetime mortgage grew 5% (£4,457) annually to £94,215 while the average lump sum lifetime mortgage rose 7% (£8,753) to £131,781.

David Burrowes, chair of the Equity Release Council, said: “The popularity of equity release so far this year is the natural result of modern products offering greater flexibility and a property market where growth has far outstripped inflation, alongside an ageing population.

“After two years where customer numbers have been subdued by the pandemic, realising gains from rising house prices can make a major difference to people’s quality of life.

“Not only are more people considering equity release, but they are doing so for many different reasons and helping old and young alike to fund everyday costs and major life events.

“However, it remains vital that decisions are carefully considered through both a long-term and short-term lens, with family input wherever possible and with financial and legal advice in every instance.”


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