As we pass the midway point of 2015, it is becoming clear that Equity Release is in the midst of a significant resurgence. Equity Release hit record levels last year, and reports suggest it could repeat the feat this year, following a record start.
Figures show that Equity Release has risen dramatically with lending reaching £753m in the first half of 2015, against £641m in the first six months of 2014. This is an increase of 17% year-on-year.
The rise perhaps should not be considered too much of a surprise with the increase in popularity coinciding with a significant rise in house prices. The combination of rising house prices and ever smaller pension pots has led to older homeowners in particular quickly amassing considerable amounts of equity in their properties.
It should be noted that Equity Release does not represent the only method of freeing up cash. Many might consider the option of downsizing, although this may require a far greater life change than other possible solutions.
The Experts View
It is indeed perhaps no great surprise to many within the industry, and indeed those who are not, that with strong property prices and savings rates at record lows that many people who look towards retirement, or who are already retired, are looking into Equity Release. It has also possibly seen an increase in popularity as parents/grandparents look at ways of assisting their children/grandchildren in buying their own homes by means of a contribution towards a deposit. It does not suit all, and is very much a specialist area of lending where correct advice is paramount in deciding if this method of raising capital is correct for the individuals concerned. However, for those that it does work out best, it can be a very good way of raising that much needed capital instead of selling their home.
To discuss how you can benefit from Equity Release lending, get in touch today.