Popularity of equity release plans is soaring, report shows
26 April 2010
Britons are increasingly turning to equity release plans in order to secure their retirement finances, according to new research.
A recently-published report from equity release trade body Ship has revealed a ten per cent increase in people taking out home reversion plans in the first quarter of 2010.
According to the study, £213.4 million worth of equity release advances were made in the three months to March 2010, with drawdown mortgages proving to be the most popular scheme, accounting for almost £120 million.
Andrea Rozario, Ship's director general, said: "These figures show that despite the withdrawal of some big providers from the market the equity release market remains robust.
"Ship is confident that over the course of the year the market will remain strong and it is even possible that new entrants will appear from the middle of the year onwards."
Equity release plans such as lifetime mortgages can provide a homeowner with a lump cash sum or a regular income with money taken from the value of their property assets.