Older homeowners tapped record amounts of cash from their homes last year. They borrowed £4.8bn in equity release mortgages in 2021, an increase of 24% compared to 2020, according to the Equity Release Council. The typical equity release customer borrowed just under £125,000 in the final quarter of last year, a figure that was roughly the same whether they took a lump sum or decided to 'draw down' their money over time. The amount borrowed on a drawdown plan increased by 18% annually, while on lump sum plans it increased by 20%. The ERC said this was because of rising property prices, which customers were using to help them cope with the rising cost of living. However, it said it was also impacted to an extent by wealthier customers with higher-value homes increasingly being attracted to equity release.
Daily Mail
Comments