According to a lifetime mortgage lender, one in five of their new equity release plans in Q1 were taken out by homeowners with properties worth over £550,0001.
When asked why they were releasing equity, 22% of customers said they planned to spend the unlocked cash on improving their home. Less than 20% of borrowers wanted to repay mortgages and debts, meanwhile 15% were putting the money towards holidays.
Are consumers regaining confidence?
The equity release market is showing some signs of improvement after a slow 2023. In the first three months of this year, there was a 4% quarterly increase in the number of new and returning customers using equity release products2. Existing customers seem to be more confident than those who are new to the market, as returners drove a 6% increase in drawdown activity in Q1.
What’s in store?
David Burrowes, Chair of the Equity Release Council, predicted, “As we look to the rest of 2024, we are confident that the green shoots that we are starting to see will germinate and the market will return to growth.”
Talk to us
If you’re considering releasing equity on your home, get in touch. Equity release isn’t the right solution for everyone and there could be other options which may be more suitable for you. Professional advice is essential.
1Pure Retirement, 2024, 2ERC, 2024
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.
