New equity release customers surpass 13,000 for the first time in Q3 2022

Summary below, click here to download the report in full

• Homeowners aged 55+ took out a record 13,452 new equity release plans between July and September 2022 (Q3 2022), an 8% increase on the previous quarter
• With 9,648 returning customers and 2,419 further advances agreed, the market saw 25,519 customers active during Q3 with total lending topping £1.71bn, another record figure
• New customer numbers increased by a third (34%) year-on-year, with total lending to new and returning customers growing by 49%
• New plan sizes were largely stable at an average of £133,770 for lump sum lifetime mortgages, up 1% from Q2, while new drawdown plans dipped 3% to £88,340 for the initial withdrawal
• Activity reduced 10% in the final month of Q3 as September saw challenging economic conditions and product prices rise

David Burrowes, Chair of the Equity Release Council, comments:

“The summer months have seen the equity release market resume its pre-pandemic growth trajectory, with extra protections having been added in the intervening years so all new customers can make voluntary repayments when they can afford to and reduce their overall costs. Equity release is not an overnight purchase, and the desire to secure lower interest rates before anticipated rises is likely to have influenced customers’ timings as they completed deals from earlier in the year.

“While recent turbulence in financial markets have added to upward pressure on interest rates, product flexibilities and stringent safeguards mean modern equity release remains the most secure and adaptable way to access the money tied up in your home without giving up ownership or risking repossession through fixed repayment commitments.

“With the value of UK homes having passed £7trillion, people are increasingly inclined to put their property wealth to work in later life to support themselves and family in the here-and-now.

“Council standards mean there are measures in place to protect customers’ existing loans from rising interest rates, as well as ensuring that people can only take out equity release once they have considered it from every angle through detailed financial and legal advice.”