More homeowners taking up equity release

 

There has been a surge in the number of people taking out equity-release loans against their property in retirement, according to industry statistics.

Cash-strapped homeowners over 55 released £473m of housing wealth in the first six months of the year compared with £424m from January to June 2012.

The growth in activity means the equity-release market has returned to pre-financial crisis levels, with more lenders offering products and a greater demand from borrowers.

Nigel Waterson, chairman of the Equity Release Council, said: “As a nation we are becoming more aware of the shortfalls in pension income, with an increasing number of people finding they are unable to save sufficient funds for the duration of their retirement. This situation is made worse by the fact that the growing cost of day-to-day living shows no sign of levelling out or subsiding anytime soon.”

The Institute for Fiscal Studies also warned government pension reforms will make more people poorer in retirement than better off. People in their 20s may have to live to 105 for their pension income to match what they would have got under the old one.

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Finacial products from our partners
Property search
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Ashdown Group: Business Analyst - Financial Services - City, London

    £50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...

    SThree: Trainee Recruitment Consultant

    £18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...

    Recruitment Genius: Administrator - IFA Based

    £22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...

    Day In a Page

    Major medical journal Lancet under attack for 'extremist hate propaganda' over its coverage of the Israeli-Palestinian conflict

    Lancet accused of 'anti-Israel hate propaganda' over coverage of Gaza conflict

    Threat to free speech as publishers of renowned medical journal are accused of inciting hatred and violence
    General Election 2015: Tories and Lib Dems throw their star names west to grab votes

    All noisy on the Lib Dems' western front

    The party has deployed its big guns in Cornwall to save its seats there. Simon Usborne heads to the heart of the battle
    How Etsy became a crafty little earner: The online market has been floated for £1.2bn, but can craft and capitalism coexist?

    How Etsy became a crafty little earner

    The online market has been floated for £1.2bn, but can craft and capitalism coexist?
    Guy Ritchie is the latest filmmaker to tackle King Arthur - one of our most versatile heroes

    King Arthur is inspiring Guy Ritchie

    Raluca Radulescu explains why his many permutations - from folk hero to chick-lit hunk - never cease to fascinate
    Apple Watch: Will it live up to expectations for the man or woman on the street?

    Apple Watch: Will it live up to expectations?

    The Apple Watch has apparently sold millions even before its launch tomorrow
    Don't fear the artichoke: it's a good cook's staple, with more choice than you'd think

    Don't fear the artichoke

    Artichokes are scary - they've got spikes and hairy bits, and British cooks tend to give them a wide berth. But they're an essential and delicious part of Italian cuisine
    11 best men's socks

    11 best men's socks

    Make a statement with your accessories, starting from the bottom up
    Paul Scholes column: Eden Hazard would be my Player of the Year – but I wonder if he has that appetite for goals of Messi or Ronaldo

    Paul Scholes column

    Hazard would be my Player of the Year – but I wonder if he has that appetite for goals of Messi or Ronaldo
    Frank Warren: Tyson Fury will be closely watching Wladimir Klitschko... when he wins it'll be time to do a deal

    Frank Warren's Ringside

    Tyson Fury will be closely watching Wladimir Klitschko... when he wins it'll be time to do a deal
    London Marathon 2015: Kenya's brothers in arms Wilson Kipsang and Dennis Kimetto ready to take on world

    Kenya's brothers in arms take on world

    Last year Wilson Kipsang had his marathon record taken off him by training partner and friend Dennis Kimetto. They talk about facing off in the London Marathon
    Natalie Bennett interview: I've lost track of the last time I saw my Dad but it's not because I refuse to fly

    Natalie Bennett interview: I've lost track of the last time I saw my Dad

    Green leader prefers to stay clear of her 'painful' family memories but is more open about 'utterly unreasonable' personal attacks
    Syria conflict: Khorasan return with a fresh influx of fighters awaiting the order to start 'shooting the birds'

    Khorasan is back in Syria

    America said these al-Qaeda militants were bombed out of the country last year - but Kim Sengupta hears a different story
    General Election 2015: Is William Cash the man to woo Warwickshire North for Ukip?

    On the campaign trail with Ukip

    Is William Cash the man to woo Warwickshire North?
    Four rival Robin Hood movies get Hollywood go-head - and Friar Tuck will become a superhero

    Expect a rush on men's tights

    Studios line up four Robin Hoods productions
    Peter Kay's Car Share: BBC show is the comedian's first TV sitcom in a decade

    In the driving seat: Peter Kay

    Car Share is the comedian's first TV sitcom in a decade. The programme's co-creator Paul Coleman reveals the challenges of getting the show on the road