Equity release customers are releasing more equity from their homes according to anecdotal evidence from provider Responsible Equity Release.
UK homeowners released £86,400 last month – the highest amount of equity ever released with the provider in a month.
Steve Wilkie, managing director, Responsible Equity Release, said: “Although the Bank of England has indicated that an interest rate rise is imminent, the reality is that even a 1% rise, which is unlikely in the short term, will repair the damage suffered by Britain’s pensioners who have seen their savings deliver very little income over the past decade.
“And where annuities could have taken up the slack in the past, many pensioners over the past couple of years have chosen to give up the guaranteed income that annuities offered, instead choosing to keep their pensions invested.
“However, when investments aren’t performing, as they haven’t been doing recently, pensioners are having to turn the drawdown tap off to avoid eroding their pension pots.
“That leaves pensioners facing an income drought, and equity release has come to the rescue, stepping in to provide a viable guaranteed income stream, that annuities used to deliver.”