Q3 2020 equity release market statistics released by the Equity Release Council show a positive upturn. The number of new equity release plans agreed (10,351) increased by 41% from the previous quarter as national lockdown restrictions were eased across the UK.
Equity release allows individuals aged 55 and over to release money from the property they live in without having to make monthly payments.
There was a steady increase in new customer activity during Q3 also: July saw 3,147 new plans agreed, followed by 3,228 in August and 3,976 in September.
£963m of property wealth was unlocked in total during Q3 2020 by new or returning customers, up by 38% from Q2, but down 3% from Q3 2019. In addition, this activity would have been influenced by an extended pipeline and delayed cases from earlier in 2020.
David Burrowes, Chairman of the Equity Release Council, comments:
“Despite the uncertain climate, the market has adjusted well to the challenges of operating safely in a pandemic. Desktop property valuations have been used selectively, solicitors have taken extra steps to maintain consumer protections when advising remotely, and product pricing has remained competitive.”
During uncertain times, people are investigating how they are going to keep up their standard of living, pay for potential increases in care costs and plan ahead. Recent research found that 48 per cent of women and 41% of men are concerned about exhausting their retirement savings too soon.
Why equity release?
Your home could hold the key to improving your quality of life or breaking down financial barriers facing you or your family members. Equity release could help if you are looking to increase your available funds for a dream holiday, home improvements or to help a family member with their school or university fees.
If finances are tighter, it could be the ideal solution to help you with your regular monthly or quarterly bills.
Equity release plans are regulated by the Financial Conduct Authority (FCA) and offer a safe way to unlock some of the tax-free funds that may be tied up in your property.
Henry Knight Managing Director of Springtide Capital commented:
“Equity release is becoming a popular option for those looking to release money from their property whilst continuing to live in it. 2020 has been an unprecedented year in many aspects. People are investigating the many alternative options for unlocking the capital in their homes and the increase in equity release activity in Q3 is no surprise. As always, regulated financial advice will help individuals make an informed choice.”
With so many features available within equity release schemes, speak to one of our advisers today to discover if it is the right option for you.
Half of women approaching retirement are worried about running out of money in later life – Equity Release Council