The latest figures from the Equity Release Council indicate that the first quarter of 2014 saw the highest lending figures for a first quarter since 2002, when quarterly records began.
In total, £315.5 million was lent through equity release during the quarter, a rise of 2% over the fourth quarter of 2013, and a 35% increase year-on-year.
Lump sum products grew 50% in value, from £87.8 million in the first quarter of 2013 to £131.8million over the same period this year.
Drawdown products also increased year-on-year, from £145.7 million in the first three months of 2013 to £182.5 million in 2014, a rise of 25%.
“While house prices are recovering across much of the country, we are seeing customers typically withdrawing only a quarter of the total value of their property through equity release,” commented Nigel Waterson, Chairman of the Equity Release Council.
“It gives them a substantial sum to help boost their income, clear existing debts, take on home improvement projects or pursue new activities and interests in later life – while still allowing many to preserve an inheritance to leave behind,” he added.
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