Older homeowners flock to equity release, ERC data shows

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Homeowners aged between 65 and 74 are increasingly using equity release to supplement their income in later life, figures from the Equity Release Council's (ERC) market report have shown.

Data for the first half of the year showed 58% of new equity release contracts sold were taken out by older homeowners. Total lending was up 11% to £710m. It stood at £641m in the first half of last year. A quarter of new plans sold during H1 were bought by over 75s, with 22% aged between 75 and 84. Over 85s accounted for 3%. Customers aged 55 to 64 accounted for 18% of new plans, down from 20% in the second half of last year. Drawdown lifetime mortgages are the favoured method of equity release. The ERC said these accounted for 65% of new plans agreed in the first half of th...

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