The total value of equity release lending surged by almost a third year-on-year in the third quarter, from £284.1m last year to £375.5m this year, as more people use value in their property to help fund their retirement.
New figures published by the Equity Release Council today reveal 5,565 new customers used equity release during Q3 2014, a 12 per cent increase compared to the same period in 2013 and the largest single quarter figure since 2008.
The average value of equity release lending hit £67,467 during the quarter, up 18 per cent year-on-year and the highest level since records began.
The ERC says the total value of equity release in 2014 has now passed the £1bn mark, higher than the entire year’s lending totals for 2009 to 2012.
Equity Release Council chairman Nigel Waterson says: “The latest lending figures show equity release is proving an invaluable financial planning solution for over-55s approaching retirement as pension savings fail to cover rising costs.
“We’ve seen record-breaking growth this quarter as the value of lending exceeds all previous benchmarks.
“Rising house prices also mean that customers have a growing pool of equity at their disposal and can still keep a large proportion of the value of their house intact. Equity release can offer a large and much needed boost to people’s finances, providing comfort and stability throughout retirement.”