Equity Release grows 28% on 2020

Indeed, the number of customers who have used equity release to repay
their mortgages has almost doubled in 12 months

The number of customers who have used equity release to repay their mortgages has almost doubled in 12 months

In 2021, existing customers took an additional £494 million in drawdown and further advances to take the total amount released to £4.89 billion (FY 2020 – £3.88 billion). Interestingly, while the market hit new heights in FY 2021, this was driven by the size of the average amount released rather than the number of customers. This peaked in FY 2018 when 47,081 plans
were taken out.

In FY 2021, customers took out an average of £104,792 which is
substantially higher than the £84,919 (FY 2020) and £76,359 (FY 2019) taken in previous years. While after a challenging 2020, many had high hopes for 2021 returning to more normal market conditions. This was impacted by the ongoing threat of Covid which saw customers continue to focus on meeting pressing needs such as debt repayment or supporting wider families via gifting rather than discretionary spending on holidays or
home improvements.

Indeed, the number of customers who have used equity release to repay
their mortgages has almost doubled in 12 months from 20% (FY 2020) to
38% (FY 2021) while at the same time spending on holidays has fallen from
23% (FY 2020) to 7% (FY 2021). Still buoyed by the Stamp Duty Holiday
which finished at the end of September, 22% of equity release customers
used housing equity to support families (27% – FY 2020)

See how much you could borrow here

Source: Key Market Monitor 2021 available to download here

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