The equity release market could exceed £1 billion this year after the third quarter saw plan sales and lending rise by 11%.
Figures from Key Retirement Solutions (KRS) show total lending rose to £256.6 million in the three months to the end of September. According to KRS, the figure would have reached £383 million if unreleased drawdown funds were added. Plan sales rose 10% to 5,260 over this period compared with 4,779 in Q3 2011. There was 11% growth in total lending over the same period. The research found a fifth (19%) of customers used some or all of the cash to pay off mortgages. Drawdown made up 70% of total sales compared with 29% for lifetime mortgages and 1% for reversion plans. Across th...
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