Latest data compiled by Responsible Equity Release indicates that more homeowners than ever are taking advantage of the equity in their properties according to figures.
In the first two months of 2017, Responsible Equity Release saw a 70% rise in new equity release plans compared to the same period in 2016, with 52% more homeowners releasing equity from their homes.
The average amount of equity released by homeowners has also increased, at just over £70,000 in the first two months of 2017, compared to £63,197 during the same period in 2016 – an 11% increase.
Regional figures reveal that Yorkshire homeowners have taken more than five times more equity (444%) out of their properties in 2017 so far, compared to last year. While homeowners in the East of England have released 250% more equity since the start of the year compared to the same period in 2016.
London homeowners have released the largest amount of equity from their homes in January and February this year, with an average loan size of £260,642. While average loan sizes this year have increased the most in Yorkshire, with an average of £75,451, compared to £49,792 for the same period in 2016.
The reasons why people are releasing equity remain similar with the most common reasons paying off mortgages early, clearing debt and helping out the family with an early inheritance, the firm said.
Steve Wilkie, managing director of Responsible Equity Release, said: “The momentum from last year has continued into this year. Equity release is increasingly being seen as an important financial product for thousands of people with different needs; from pensioners wanting to supplement their retirement income, to grandparents wanting to help out their children at a time when a boost of funds can make the biggest difference.
“As long as the equity release industry doesn’t rest on its laurels and continues to innovate to meet the changing demands of the customer, who wants more choice and flexibility, we could see 2017 eclipse last year’s impressive growth.”