New figures have revealed that the amount of equity released last month hit a record high.
According to Responsible Equity Release, January saw UK homeowners unlock more than triple the average salary from their properties.
Their analysis revealed that the average plan handled by the company reached £87,035 during January, a record high for a single month. It beats the previous record of £84,028, the average amount released in November last year.
Month-on-month, the figure also saw an increase, with January’s total up by almost 25% from the final month of 2017.
On a regional level, Yorkshire and the Humber saw the most significant monthly growth in equity released, rising by 149% from December last year. London was next in line, with a month-on-month rise of 85%.
Commenting on the figures was Stevie Wilkie. The managing director of Responsible Equity Release stated: “Last year equity release became mainstream. The equity release sector has innovated to meet the needs of the retiree and has attracted a new audience to a product that has often been seen as niche. We are seeing more pensioners turning to equity release as a viable income source, to fill the retirement income gap left by poor performing savings accounts.
“Equity release has effectively become the second pension for thousands of retirees. Pensioners have realised their home is an asset that can work for them during their lifetime – and not just to help make their retirements a little more comfortable, but to also support family members at crucial points in their life when costs are often at their highest.”
