In the third quarter (Q3), total equity release lending shot up to a whopping £716 million. Who’s borrowing? Well, 7,379 new faces, and 8,466 who’ve returned for a bit more.
On average, new customers are taking out £63,238, with returning ones potentially borrowing even more in the future. Lump sums, that’s just a one-time large payment for those of us keeping it simple, averaged at £94,806. Interesting to note, both these figures have decreased by about a third compared to last year.
From the Experts: The Rebound Begins
David Burrowes, the Chair at the Equity Release Council, said that after a spell of high interest rates, there’s a cautious optimism in the market. With customers coming back, there’s potential for growth. But, he also emphasised the importance of seeing equity release as a part of the larger retirement planning picture.
Stephen Lowe from retirement specialist Just Group painted a broader image. He mentioned that business is still not where it was a year ago, but there’s hope. The total lending and new customer numbers in Q3 were the highest in 2023!
For some context, the over-65s are sitting on a mind-boggling £2.6 trillion of housing wealth. So, even with interest rates causing some hesitation, the potential for growth is strong. And given the complexities, Lowe advises folks to get professional advice before diving in.
Customers Taking Charge
Simon Gray from HUB Financial Solutions, an equity release advisory firm, feels positive about the current trends. Today’s equity release plans offer flexibility, putting the decision-making power in the hands of customers. More people are realizing that their homes aren’t just a place to live – they’re a potential goldmine!
With all this talk of equity release, it’s crucial for homeowners to get sound advice. Whether it’s about enhancing one’s lifestyle or helping out the next generation, making informed decisions is the way to go!
In Conclusion
The equity release market seems to be finding its feet after a rocky period. For homeowners looking at tapping into their property’s value, the future is looking a tad brighter. But, always remember, the world of finance can be tricky, so seeking advice is a wise move!