The equity release market has enjoyed its third successive year of growth according to figures from the Equity Release Council (ERC.)
The total value of the market reached £925.7m by 2012's year end, a 17% increase from £788.6m in 2011.
Andrea Rozario, director general of the ERC [pictured] said the figures represented a "great conclusion to what has been a landmark year for the Equity Release Council."
The average value of equity release plans also hit a 14 year high at £52,191. ERC attributes this to more people carrying debt into retirement and addressing outstanding balances on products including interest-only mortgages.
In addition, drawdown mortgages increased their market-share to two-thirds (66% or £610m) of the market, from 61% (£480m) the previous year and 49% (£465.4m) in 2009. This suggests that people are taking higher initial lump sums from these products to help rebalance their finances.
The overall figures for 2012 were boosted by a strong final quarter, when the value of the market (£253m) was higher than in any quarter since the end of 2008.
Rozario added: "The ongoing debate over issues like later life finances and the cost of elderly care has already grabbed the attention in 2013. But the growth of the equity release market over the last twelve months is a really positive sign that people are making proactive moves to get the best use out of their housing equity."
Janus Henderson Global Dividend Index
More than 10 million shares allocated
Long-term strategic holding
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