10 Oct

Equity release becoming more popular

Equity release becoming more popular

More and more Britons are opting to release value from their homes through equity release products, new research has revealed.

According to figures from Key Mortgage Solutions’ market monitor, demand for the practice is up ten per cent this year, with over 22,000 products taken out so far.

Meanwhile, the value of the equity release sector has increased by 26 per cent to more than £1 billion, as homeowners opt to release larger sums.

Demand for such products is up ten per cent, with 22,600 taken out in 2007 so far.

Dean Mirfin, business development director at KRS, said: "The report shows demand for equity release continues to grow in all regions of the UK, despite the volatility in the credit markets and speculation over movements of the base rate over the last few months."

The study also noted that the greatest increase in demand was for drawdown policies – that is those where consumers are able to determine the maximum amount of equity to be draw out and are given the money gradually.

These products now constitute 48 per cent of the equity release market, compared with 19 per cent 12 months ago.

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