The equity release sector is booming in popularity, with the latest research from the Equity Release Council showing a massive surge in lending in the year 2015. In this article, Acumen explains why equity release lending is proving to be so popular.
According to figures collected by the Equity Release Council, the value of equity release lending rose to 26% between the first and second half of 2015. With a strong growth being observed from £710m in the first six-month period to £898m in the second six-month period.
This marks the strongest half-year growth rate since the financial crisis, with a growing number of people choosing to release equity in their homes via lifetime mortgages rather than downsizing.
Equity release market growth
The research shows that equity release customers benefit from significant cash injections. This is due to the fact that they are able to withdraw more than 100 weeks’ worth of pay from their homes over a six-month period.
The data collected during the six-month period shows that the amount of housing wealth that has been unlocked via drawdown mortgages stands at £49,607. While the average lump sum withdrawal was £81,324.
From the report, it is clear that equity release products have proved to be versatile in helping customers to meet a range of financial needs before, at and during retirement.
Nigel Waterson of the Equity Release Council believes that new and existing providers are driving the appeal of equity release with new product features, allowing more freedom around capital repayments and interest payment on loans.
“As a result, there is growing recognition from UK consumers, regulators and politicians that housing wealth can – and should – play a greater role in financial planning for retirement,” says Waterson.
Acumen offers equity release advice in the UK
Here at Acumen, we expect this trend to continue and we will ensure that our product innovation is combined with consumer protection to offer you the best possible equity release options.
If you are looking to free up capital locked in your home, increase your income, maintain your standard of living, or pass on wealth to your children, talk to one of our dedicated team about equity release today.
Contact us on 0151 520 4353 or email email@example.com.