The total value of equity release lending passed £1bn in the first nine months of 2014, according to the latest industry figures from the Equity Release Council.
The January-to-September figure of £1.02bn is more than the entire year’s lending totals for 2009 to 2012 and is already 95 per cent of last year’s total.
More than 5,565 over-55s releasing equity from their homes in the last three months alone, while in the same period the average amount lent reached a record £67,467.
Lump sums are catching up to drawdown plans in popularity. This may be fuelled by their potential to allow customers to pay off lingering debts, such as outstanding mortgages, or to fund one-off expenses.
Nigel Waterson, Chairman of the Equity Release Council says:
“The latest lending figures show equity release is proving an invaluable financial planning solution for over-55s approaching retirement as pension savings fail to cover rising costs. We’ve seen record breaking growth this quarter as the value of lending exceeds all previous benchmarks.
“Rising house prices also mean that customers have a growing pool of equity at their disposal and can still keep a large proportion of the value of their house intact. Equity release can offer a large and much needed boost to people’s finances, providing comfort and stability throughout retirement.”
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