Equity Release lending hits record high

by Aaron Strutt

Aug 01 2015

Equity release lending to UK homeowners over the age of 55 totalled £384.3m in the second quarter, the largest amount since records began.

The latest figures from the Equity Release Council shows lending was up 18% both on the previous quarter and last year’s Q2 total of £325.6m. Homeowners aged 55+ effectively withdrew £4.2m of housing wealth every day from April to June.

There were 5,414 new equity release customers in Q2 2015, an 11% increase on the last quarter. This uplift comes despite savers gaining greater access to their pension pots under the freedoms launched on 6th April.

Aaron Strutt, product manager at Trinity Financial, recently told The Sunday Times: “People should work out whether they really need the money before they sign up to an equity release product, because the rolled-up interest can quickly erode any equity in a property.”

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