"The equity release market has had a strong but steady start to 2018, and the range of people with specific requirements that equity release can now benefit has seen the product move from niche to mainstream"
The latest figures from Responsible Equity Release have shown that the market has continued to go from strength to strength, with a strong start to the year.
According to the figures, February saw individual homeowners release on average almost £83,000 from their properties down from £87,035 in January.
While the total amount of equity released by homeowners so far in 2018 is more than double (132%) the total amount released during the same period in 2017. And the total number of people taking out equity release plans in the first two months of 2018 is up 93% on the corresponding period last year.
The equity release market is set for another strong year as it becomes more established as a mainstream financial product. More people are seeing the potential of equity release, and the range of products that are now available mean there’s now a plan to fit everyone’s needs.
Regionally, the total amount of equity released by homeowners in Scotland and the North East, was up 89% and 25% respectively in February 2018 vs January 2018. While, homeowners in the North West individually took 35% more equity from their homes last month (£50,955) than in January (£37,781).
February also saw London homeowners reduce the amount of equity they are taking out of their properties. Equity release plans last month were on average £191,912, down from £203,296 in January.
Steve Wilkie, managing director, Responsible Equity Release, comments: “The equity release market has had a strong but steady start to 2018, and the range of people with specific requirements that equity release can now benefit has seen the product move from niche to mainstream.
We’re still seeing plenty of enquiries from people who took out interest only mortgages on their homes which are coming to an end and are struggling to remortgage. But we talk to just as many retirees who are keen to have an equity release drawdown facility, so that they don’t have to take money out of their pensions while stock market volatility is so high. The home has become a viable income source, filling the retirement income gap left by poor performing savings accounts.”