A total of £508million in housing wealth was released in the first six months of the year thanks to growing confidence in equity release.
According to research from specialist adviser Key Retirement Solutions customers taking out an equity release plan in the first half of 2013 released an average of £55,272 up 12% from 2012’s £49,305.
Clearing mortgage debt was a more popular use of equity release than paying off credit card and loan debts.
57% of people spent the money on home and garden improvements, keeping it the most popular use of funds, whilst 31% used money for holidays and 28% gifted the money to family and friends.
Dean Mirfin, Group Director at Key Retirement Solutions, said: “The sales trend is firmly up with plan sales continuing to expand. But the values released continue to grow faster than plan sales reflecting the increase in average amounts released.
“That highlights how customers are confident about making use of their property wealth as part of financial planning which is being driven by market innovation and the quality of advice.
“Equity release is playing a major role in helping retired homeowners maximise retirement income which is particularly needed when customers need to find the best solutions in the face of low interest rates and low annuity rates.”
What do you think about equity release? Do you think the market will continue to grow?
