Equity release customers are saving in excess of £70,000 as increased competition drives growth in property wealth being used to increase the standard of living in retirement, analysis from Key Retirement suggests.
Key’s Market Monitor showed that in the first half of 2017 total property wealth released is 50% higher than the whole of 2012 at £1.25bn.
The data also showed that plan sales were 17,656 as nearly 100 customers a day used equity release to improve their standard of living.
Dean Mirfin, technical director at Key Retirement, said: “Retired homeowners are benefiting from record growth in the equity release market, as increased competition drives down the cost of borrowing.
“Existing customers can also take advantage of falling rates but it is important they ensure they take independent specialist advice before making any decisions to switch as savings from lower rates need to be balanced against any early repayment charges.”
The cost of raising money through lifetime mortgages has decreased over the past five years as in 2012; a total of £832m of property wealth was released as 19,675 plans were sold.