Equity release sales up 19% in Q3

Equity release sales up 19% in Q3

The latest Equity Release Market Monitor from Key Retirement Solutions (KRS) has revealed a rise in equity release take-up in the July to September period.

Equity release sales were up 19% during the period compared to the April to June period, said KRS.

Equity release allows homeowners to release cash from the value of their property - the trend became very popular during the property boom when homeowners saw the value of their property soar.

According to KRS, 6,123 pensioner households took out an equity release plan in quarter three, this compares with 5,143 in quarter two and 4,703 in the quarter one period.

Total lending for equity release was up 13% to £214 million, while falling house prices were reflected in the average 4% fall in the value of each plan taken out compared to the previous quarter.

Commenting on the figures, Dean Mirfin of KRS, said: “The continued growth in the number and value of plans throughout 2009 is very encouraging. Pensioners are hard hit by the current climate, experiencing higher rates of inflation and previously unknown low levels of returns on their savings, as a result equity release is providing a strong support for those who want to maintain a good quality of life in retirement.”

“Whilst a number of providers have temporarily had a break from the market of late we expect that a number will soon return, stronger and wiser. The demand for greater income or capital in retirement is continuing to grow and as a result equity release has to be a serious consideration for anyone who wishes to boost their provision in, or approaching, their retirement,” Mr Mirfin concluded.

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