The average size of equity release loan taken out by customers in 2013 was £56,917, which is the largest in 15 years according to recent figures released by the Equity Release Council (The Council).
Equity release lending reached £594.3 million in the second half of 2013, which amounts to a 3% increase over the same period in 2008. In the last three months of 2013, customers released £310.2 million, which is apparently the most released in any one quarter since autumn 2007.
In total, equity release loans amounted to £1.07 billion in 2013, a 16% increase over the previous year. The Council’s figures also reveal a 36% increase in the total value of annual equity release loans to the over-55s in the last two years.
Nigel Waterson, Chairman of the Equity Release Council said:
“These figures show that the UK equity release sector is growing rapidly. We are now back to pre-financial crash levels, which is a huge milestone for the sector.
“An asset-rich generation is increasingly taking positive steps to use their property wealth to enjoy a better standard of living. For some that means clearing debt, while for others it means having more room in their budget to pay for extras or simply cope better with day-to-day costs.”
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