The Equity Release lender Key Retirement have published that homeowners have released £934 million worth of equity from their property using Equity Release schemes between January & June this year. The number of equity release taken out has increased by 11%. East Anglia released on average £67,000 compared to £184,000 in London, which was an 80% rise. The South East saw a 33% rise.
Drawdown was the most popular type of Equity Release options at 61%. Overall the data shows that approximately 65% of applicants used the funds for home and garden improvements, 29% used the money to fund holidays and 24% used the funds to help or treat family and friends.
Just over ⅕ of the applicants during this period used the funds to pay of existing mortgages; these could have been residential mortgages on an interest only basis without ‘valid’ repayment vehicles such as investments, ISAs etc to pay of the capital at the end of the term.
We are your local Equity Release Broker in Cambridge. Please contact us to discuss your requirements further.