The Equity Release Council has recently published a report revealing that 65-74-year-olds now account for the majority (59%) of new equity release customers.
On average, customers own a property valued at £254,943, which is a 16% increase over 2011’s average value. Interestingly however, the proportion of equity released by customers has also increased by 16%, which the Council suggests is an indication that attitudes to borrowing have remained constant.
The most popular types of equity release product identified in the report are drawdown products, which provide customers with an additional regular source of income.
The report also found that most customers are either married or in a cohabiting relationship (61% in 2013), and there has apparently been a drop in the number of single or widowed people taking up equity release.
Nigel Waterson, Chairman of the Equity Release Council, said:
“It is a great paradox that so many people across the UK have considerable equity invested in their homes and yet disappointing retirement incomes leave them struggling with extra expenses and rising living costs after they finish work.
“No one retirement product offers a blanket solution to achieve financial security, but increasing numbers are finding an answer through equity release and it is an important and flexible option to consider in later life.”
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