Equity release is up 28 per cent with a rise of £198m on last year
OLDER homeowners are tapping into their property wealth at the greatest rate seen for a decade, new figures reveal.
The first half of 2016 saw £908million of lending, up £198million on the equivalent period of 2015
The first half of 2016 saw £908million of lending, up £198million on the equivalent period of 2015, according to the Equity Release Council.
The 28 per cent increase amounts to the highest rate of growth in equity release seen since 2006.
The 28 per cent increase amounts to the highest rate of growth in equity release seen since 2006
The borrowing is being fuelled by owners’ determination to enjoy a comfortable retirement and to gift money to their grown-up children.
Housing wealth offers a vehicle for inheritance planning
Research by Moneyfacts in March showed the range of equity release products has grown by 34 per cent year-on-year, as increasing competition has driven down rates.
While the average age of equity release customers is just below 70, the percentage of new customers aged 55 to 64 has increased from 17.5 per cent to 21.2 per cent in a year.
'Housing wealth offers a vehicle for inheritance planning', says ERC chairman Nigel Waterson
ERC chairman Nigel Waterson said: “Savings shortfalls and other financial challenges leave many over- 55s looking for an extra source of income.
“Housing wealth offers a vehicle for inheritance planning.”