The value of the equity release market increase by 4% over Q3 from £196.7m to £205m, according to the latest figures from Safe Home Income Plans (SHIP).
This is the largest quarter-on-quarter increase since before the credit crisis.
Over the third quarter, intermediaries gained 1% of the market and sold 82% of equity release products, whilst direct sales teams sold 18%.
The average release increase by over £1,000, from £45,702 to £46,754 since the second quarter.
Drawdown mortgage sales maintained their substantial share of the market, accounting for 57% of equity release sales, whilst lump sum product sales came second at 41%.
The figures represent a reversal of trends in Q3 2008, when lump sum products accounted for 56% of sales values.
"It is interesting to note the swing from lump sum mortgages being the most popular product to drawdown dominating the market," says Andrea Rozario, director general of SHIP.
"With the current economic turmoil and resulting consumer uncertainty, many consumers favour drawdown mortgages which allow them to gradually access the equity in their homes."
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