The Equity Release Council (ERC) has published its Autumn 2021 report and we wanted to share some of their findings with you here on our blog for our Access Equity Release clients. The ERC found that UK homeowners are converting record amounts of mortgage borrowing into property wealth. As property prices continue to rise across most of the country, potential customers have the opportunity to release unprecedented amounts of tax-free capital to use later in life.
It is now becoming very common for people aged 55 and over to use their property wealth to fund their retirement. This money can be used for anything from holidays to home improvements or gifting to family members. The Stamp Duty holiday which ended earlier this year also gave older people the opportunity to buy their forever homes, using equity release to boost their purchasing power. Many retired people may be looking to move to a new property that better suits their physical needs or is closer to family and friends.
It is clear that equity release is no longer being considered a last resort when it comes to getting the home and lifestyle you want.
Here are some of the ERC’s findings from 2021 so far:
- UK mortgage capital repayments have increased by 20% year-on-year, bringing the total amount of debt repaid in the first half of 2021 to a record £38bn.
- In the first half of 2021 35,860 new and returning customers were served, unlocking £2.3bn of property wealth.
- Lifetime mortgage product options have doubled in the last two years.
- The total number of products available rose to a record high of 668 in July, from 448 six months earlier.
- The average equity release rate rose slightly to 4.26%.
- The average age of new customers remained at 70 for new drawdown customers and 68.4 for new lump sum customers.
- Almost a third (30%) of new drawdown single plans are being taken out by female customers.
- The average house price of new customers continues to rise to record levels for both new drawdown (£419,166) and lump sum (£406,139) plans.
:: Use our Equity Release Calculator to work out how much cash you could release.
It is important to take expert advice on equity release before deciding whether it is right for you. Contact us to find out more from one of our highly trained equity release advisors.
