After a significant fall in activity during the first lockdown last spring, more positive news came later in 2020 for the equity release market.
According to data from the Equity Release Council (ERC), in Q3, £963m was released by new and returning customers. Although a 38% increase on Q2, activity in the third quarter was 3% down on Q3 2019.
Plans increased by 41% on Q2’s levels to reach 10,351, buoyed by an extended pipeline, with some plans due to have been completed earlier in the year only coming to fruition in Q3.
Looking to the future, ERC Chairman David Burrowes says the key market drivers remain in place:
“People are living longer and retirement finances are increasingly squeezed as generous final salary pensions edge further to extinction. Many older households are already facing a situation where their expenses outweigh their disposable income, which makes access to property wealth an important pillar to support later life living standards.”
If you’re considering equity release, it’s important to think it over carefully and take advice as it’s not the right option for everyone.
A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate
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(Your home may be repossessed if you do not keep up repayments on your mortgage)
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For Lifetime Mortgages/Equity Release the fee will be £799.
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