New equity release lending hit £1.5bn in Q3 20221, with 29% more plans taken out by the end of September than a year previously. The average amount borrowed now comes to more than £114,000, while pressing needs and cost-of-living concerns remain more prevalent than discretionary spending.
Why release equity?
Equity release products provide access to equity that is locked up in the value of your home. There are many reasons why you might decide to access this equity:
- Repaying debts (31%) and mortgages (24%) were key reasons people chose to release equity in the third quarter
- Supporting family members (20%) was also common, with people gifting an average amount of £53,503 to younger members to help them onto the property ladder or as an early inheritance
- There was a 3% year-on-year increase in people using equity release to fund home or garden improvements and a 7% increase for holidays.
Advice is key
Equity release is not suitable for everyone. It is vital to take financial advice to make sure equity release is the most suitable option for your individual needs. We’re happy to help – get in touch.
1Key Later Life Finance, 2022
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home. Equity released from your home will be secured against it.
