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
Catch up on our other blog posts:
Millions Hiding Ill Health From Loved Ones
Seven million people are keeping quiet about mental health issues, while nearly four million are hiding a physical health problem from their families, according to a study1. Keeping loved ones in the dark about health issues can create problems both now and in the...
Stamp Duty – Just a Reminder!
The temporary raising of the nil-rate Stamp Duty band threshold to £500,000 ended on 30 June. The measure was introduced in July 2020 to maintain confidence in the housing market during the pandemic. Don’t despair if you missed the deadline, as there's now a tapered...
A Record Summer for house prices?
House prices continue to rocket, with the Nationwide House Price Index1 revealing annual house price growth of 13.4% in June, the highest level since November 2004. The extended Stamp Duty holiday, in addition to the new mortgage guarantee scheme and changing...
(Your home may be repossessed if you do not keep up repayments on your mortgage)
We charge a fee for arranging and advising you on the mortgage. The fee will be dependent on your circumstances but will not exceed £499. (Our typical fee is £299.)
For Lifetime Mortgages/Equity Release the fee will be £799.
Our mission is to provide honest mortgage advice, whilst helping you save money.
Get in contact
Flexible appointments
Or call —02380224925