Property Purchases Funded By Equity Release More Than Double In 2021

Over-55s keen to take advantage of the stamp duty holiday drove a 116% year-on-year increase in the number of people using equity release for property purchase, new research from more2life shows. The increase coincides with the introduction of the stamp duty holiday in July 2020 and highlights how over-55s are increasingly using equity release to help them move home – often to be close to family, friends or amenities. Property purchase cases increased by 208% between H1 2020 and H2 2020 and while this started to slow as the SDLT holiday deadline loomed. Read more on the Financial Reporter website.

https://www.financialreporter.co.uk/later-life/property-purchases-funded-by-equity-release-more-than-double-in-2021.html 

Equity Release For Home Improvements Up 134% Since 2020

The number of over-50s customers seeking equity release to undertake home improvements rose by 134% in 2021, according to data from Legal & General Financial Advice. The business compared the first five months of 2021 to the same period last year, finding that the number of customers looking to unlock wealth from their home to make renovations initially rose in August 2020, and has been one of the main reasons for customers looking to take out a lifetime mortgage since then. Recent research commissioned by the Good Home Inquiry found that 63% of people approaching later life in England see home renovations as a priority in the next two years. Read more on the Mortgage Introducer website.

Equity release for home improvements up 134% since 2020 | Mortgage Introducer 

Surging House Prices See £1bn In Property Wealth Released

Older homeowners have taken advantage of the rapid escalation of house prices to release more than £11.3m in property wealth a day during the first three months of the year. The average customer received £103,710 – a 25% increase over the £83,242 released in the first quarter of 2020 – highlighting how over-55s are confidently using their housing equity to support family and ease the pressure on income by managing debt. Total equity released (including drawdown and further advances) in the three months to March 31st increased by 12.8% to £1.07 billion from £950.59 million in the same period last year despite plan sales falling by 9.5% to 10,341 from 11,423. Read more on the Property Reporter website.

Surging house prices see £1bn in property wealth released during Q1 | Property Reporter

£11 Million Is Being Released In Property Wealth Every Day In The UK

Home owners in the UK aged 55 and over are releasing the equivalent of £11 million every day from their homes, according to the latest quarterly lending figures from the Equity Release Council. Total equity released reaches £1.02 billion in the third quarter of 2018, up 24% or £195 million since the same period in 2017. And owners are not splashing out with the figures also showing that average plan sizes are consistent with a modest approach to using property wealth. It means that over £1 billion of property wealth was unlocked for the first time in any quarterly period. Read more on the propertywire website.

https://www.propertywire.com/news/uk/11-million-is-being-released-in-property-wealth-every-day-in-the-uk/

House Sales Surge Due To Interest-Only Worries

New research from equity release referral service, Key Partnerships, has revealed that many homeowners are being forced to sell their homes to pay off interest-only mortgages ahead of looming repayment deadlines. The report found that more than two out of five estate agents (43%) say the number of customers forced to sell to pay off interest-only mortgage debts has increased over the past two years. Mortgage debt issues are particularly affecting older customers trying to downsize to less expensive houses to release cash. Key’s research found 73% would-be downsizers are paying off mortgages. Estate agents are regularly asked for advice and guidance on mortgages and remortgages by clients – 58% say clients want support on mortgages. Read more on the property reporter website.

Over-55s Forced to Use House Equity to Pay off Debts

An increasing number of pensioners are having to cash out on the value of their homes so they can top up their income or pay off debts, figures suggest. Equity release lending, which lets over-55s access some of the value of their house, rose 32pc year-on-year to its highest point since 2004 at £326m, according to the Equity Release Council. The proportion loaned out in lump sums during the first half of the year rose to 41pc to 37pc, suggesting a rising number of borrowers who need funds immediately. But soaring house prices also played a part, because the average value of each loan had gone up more sharply than the number of new borrowers. Read more on the Daily Telegraph website.