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Thursday 7th February 2008
UK homeowners unlock more and more cash with equity release
The year 2007 has clearly been significant for equity release with a total of £1.4 billion released, according to the equity release market monitor*. This marks an increase of 23.5% compared to the previous year, when £1.13 billion was released.
Taking a closer look at the regional figures for amount released, the South East undeniably takes pole position with total lending at £344 million. However, London comes out top for the average release in 2007, at £92,780. Key forecast that the average loan in London will pass the £100,000 mark during 2008. Other areas with a high average amount released are the South East and the South West. A bit further north, in the West Midlands, there has also been a significant increase in the average loan, rising from £36,943 in 2007 to £47,624 in 2007.
The biggest percentage increase in overall lending can be seen in Scotland and Northern Ireland, with increases of 124.3% and 305.8% respectively. East Anglia has also experienced a rise, with lending up 44% compared to 2006. Wales follows suit with a 38% increase. Most regions also saw a strong increase in average property values in 2007. The fact that there have been increases all round shows that unlocking cash from your home with equity release is becoming ever more attractive.
*published by Key Retirement Solutions