Equity release market hits all-time high in 2016
A recent press release from Keyretirement.co.uk highlighted that retired homeowners withdrew more than £2.1 billion of property wealth last year 2016.
New analysis from leading over-55s finance specialist Keyretirement.com reveals that the equity release market hits new all-time high in 2016 after fifth year of growth.
Dean Mirfin, technical director at Key Retirement (www.keyretirement.com), said: “The equity release market has broken through the £2 billion barrier for the first time and has more than doubled in value in just five years, highlighting how property wealth is making a huge contribution to retirement planning.
“The average amount being released by retired homeowners at nearly £78,000 underlines that property wealth can help with a number of issues for customers, ranging from improving their homes and going on holiday to helping family and clearing debt.
“With more than 1 in 5 releasing equity from their homes are repaying mortgages and with 2017 being the start of the first major wave of interest only mortgage maturities we expect demand from those with a shortfall to repay the capital, or no means at all, to turn to equity release as a solution which will further drive demand.
“Rate cuts across the market and the launch of new solutions demonstrates that the market is responding to the growing need for alternatives to traditional retirement income solutions which are being squeezed by historically low interest rates.”
Read the press release from Keyretirement.co.uk in full click here