Equity release uptake declines

Data from the Equity Release Council shows that the number of people releasing equity from their property fell by 29% in Q1 compared to the first three months of 2022. This follows a sharp rise in equity release rates, which hit 8% last November. Moneyfacts figures show that rates currently average 6.21%, exceeding the averages of 3.85% seen in January and 4.16% recorded at the start of 2022. The Equity Release Council said the number of new and returning equity release customers active in Q1 dipped to 16,691, down 19% from the 20,597 recorded in Q4 2022. Total lending is also down, hitting £699m in the first three months of this year. New customers reduced their loan sizes in Q1, with the average first release from a new drawdown lifetime mortgage down 34% year-on-year to £61,785. 

The Mail on Sunday (30/04/2023)