There appears to be a growing increase of over 55’s to use property value wealth in different lifestyle ways.
In addition, 14.1% of customers used equity release to buy a car last quarter, compared to 9.9% in 2017, whilst nearly one in four did so to go on holiday.
According to the figures released by the Equity Release Council in July, the equity release market approached almost a £1bn of lending with an increase of 12% in the second quarter of this year.
It appears that it is unlikely this is simply down to a wave of downsizing. Research conducted earlier this year that downsizing was not the main intention instead, the increase suggests that the attraction of property as a long-term investment endures. Over 55s are still keen to own another and new property, therefore wealth tied up in their existing home can make a significant financial contribution.
Using existing property wealth in this way also offers further evidence that equity release customers today are proactively using the products to make major financial decisions. This appears to reinforce the rapid interest in this booming sector.