It has been a record summer for Equity Release lending.

The Equity Release Councils recent stats show, new customers passed 13,000 for the first time between July and September 2022 at 13452, an 8% rise on the previous quarter.

Lending topped £1.71bn with customers increasing by a third, year-on-year, with total lending to new and returning customers growing by 49%.

David Burrowes, Chair of the Equity Release Council, comments:
“The summer months have seen the market resume its pre-pandemic growth trajectory, with extra protections having been added in the intervening years so all new customers can make voluntary repayments when they can afford to and reduce their overall costs.

“Equity release is not an overnight purchase, and the desire to secure lower interest rates before anticipated rises is likely to have influenced customers’ timings as they completed deals from earlier in the year.

“While recent turbulence in financial markets have added to upward pressure on interest rates, product flexibilities and stringent safeguards mean modern plans remains the most secure and adaptable way to access the money tied up in your home without giving up ownership or risking repossession through fixed repayment commitments.

“With the value of UK homes having passed £7trillion, people are increasingly inclined to put their property wealth to work in later life to support themselves and family in the here-and-now.

“Council standards mean there are measures in place to protect customers’ existing loans from rising interest rates, as well as ensuring that people can only take one out, once they have considered it from every angle through detailed financial and legal advice.”

Existing Borrowers
The recent statistics show returning customers borrowing more increased in the quarter by 4% and 21% year-on-year, with £14,444, the average addition borrowing amount.

The ability to do so will have been supported by rising housing prices keeping loan-to-values low enough for existing customers to take this step.

Paying off your mortgage with equity Release

National Debt Helpline

Why Equity Release
Products are available to homeowners aged 55+, enabling them to release money from the value of their home following a regulated process of financial advice and independent legal advice to determine whether this is suitable for their individual circumstances and long-term needs.

Funds released are typically used for a range of purposes including:

  • Providing additional retirement income
  • Funding one-off expenses and lifestyle purchases.
  • Consolidating debts.
  • Meeting homecare costs.
  • Gifting a ‘living inheritance’ to family or friends.

About the Equity Release Council
The Equity Release Council is the representative trade body for the UK equity release sector with over 730 member firms and 1,800 individuals registered, including providers, funders, regulated financial advisers, solicitors, surveyors, and other professionals.

It leads a consumer market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, over 610,000 homeowners have accessed almost £42bn of property wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.

Spectrum Independent are members of the Equity Release Council and do not hesitate to contact us if you have any questions or need advice.