The equity release market achieved its best quarter for volume and value of new business this year in Q3, Key’s Equity Release Market Monitor has revealed.
Some 11,772 plans worth £886.59m were taken out in Q3 with an additional £368.58m reserved for future use.
The volume of plans taken out saw a quarterly rise of 8% but yearly decline of 3%.
Drawdown products now account for three quarters of all equity release plans sold, up from 62% in Q3 2018.
Will Hale, chief executive at Key, said: “While the market is not seeing the double-digit growth of recent years, it continues to prosper and Q3 2019 has been the strongest quarter this year with people releasing over £887m and reserving a further £369m.
“The growth in popularity of drawdown, the smaller amounts released and the increasing numbers of customers looking to remortgage, all points to borrowers who see the value of using their housing equity but want to do this as cautiously and responsibly as possible.
“Historically low rates and the wide range of products with innovative features mean that those who do want to help themselves or their families by accessing the value tied up in their home have a range of options.
“However, it also means that specialist later life advice is vital as making the wrong choice around whether to borrow, how much to borrow and how to borrow can have long-term consequences.”
Lump sum lifetime mortgages made up a quarter of sales, including 9% of enhanced plans.
The largest proportion of customers used their equity to improve their homes or gardens (67%) as they look to age proof their homes in later life.