In the early years of equity release schemes there were many things that needed evolving to make it the robust product choice that it is today. Back in the embryonic stages of equity release, there was little regulation, high rates and fees and no guarantees to protect homeowners from negative equity situations. That’s all now changed, which is why there has been a surge in equity release cases over the past 10 years.

So, we are here today to answer the question many of our aged 55+ clients ask:

How big is the equity release market today?

Here are some stats to show that the equity release market is growing, and why that may be:

• In 2021, just under 42,000 equity release mortgages were arranged. This means that Brokers/Advisers across the UK no longer see equity release as a risky arrangement, but rather the best financial decision for many of their clients.
• In 2020, £4.4bn was released, and this increased by 28% in 2021 to £5.6bn. You read that right – 5.6 billion! Can you imagine how many house deposits, holidays, and home improvements all that money has paid for, thanks to equity release?
• House deposits, holidays, and home improvements aren’t the only reasons that people take out equity release schemes, though. People also use equity release to set themselves free – 34% have used the money to repay mortgages, and 6% to pay off debts. So, if you or your parent/grandparent is in debt, equity release may be worth considering as a way of settling those debts (please note that you should always speak to a professional regarding any debts).
• Unlike the standard mortgage market, equity release rates are decreasing. In 2020, the average rate was 5%. In 2021, this figure dropped to 3.6%.

Equity release FAQ:

How old do you have to be to take out equity release? 55 or above, but the most popular age range for equity release is 65 to 74 years.

What is the most popular type of equity release product? 61% of equity release cases in 2021 were taken on drawdown products.

Are people in my area taking out equity release? The top spots for equity release in the UK currently are: the South East, accounting for 28% of equity release schemes, London, accounting for 21%, and the South West, accounting for 12%.

What is the average equity release loan size? £104,500. Enough for a healthy house deposit, some refurbishments, and a 5-star holiday!

So, equity release isn’t all bad, right? Equity Release is one of a number of later life lending products that may be suitable for your needs and requirements. To find out more we always recommend speaking with a qualified adviser who can guide you through the lending options.

If you have any questions regarding equity release, please call 0117 251 0083, or email enquiries@integraf.co.uk. We’d be delighted to hear from you!

PLEASE NOTE: Equity release may require a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration. Equity release has to fit with a customer’s needs, circumstances, and preferences, where the benefits need to outweigh the drawbacks (including outweighing the adverse effects on the customer’s entitlement to means-tested State benefits and their personal tax position) and be more suitable than alternative methods of raising funds.