Equity Release - a new income source
Although homeowners rely heavily on savings and unsecured lending, more than three quarters (77%) believe that their home is their biggest financial asset in retirement. With such a significant amount of wealth tied up in property, equity release offers a solution that more people are taking to boost their income.
The total value of equity release loans grew 14% year-on-year in the first nine months of 2013 as more homeowners took this out to ease their finances. On average customers withdrew almost £60,000 of equity from their homes’ value which is the largest amount since records began in 2002.
Many over-55 homeowners feel this sum would help them boost retirement incomes, clear debts, offer piece of mind and prevent them from having to downsize. One in four believes that £60,000 would significantly improve their quality of life.