An increasing number of older homeowners are choosing to release equity, latest figures¹ reveal, with cost-of-living pressures still the main reason for tapping into the value of their home.

Equity release for over 55s allows people to access some of the value of their home as tax-free cash. In total, homeowners used equity release to borrow £6.2bn in 2022, a 29% yearly rise. Since 2017, the market has more than doubled.

It’s not only higher amounts being borrowed; there are now more individual equity release plans for over 55s too. In 2022, 93,421 people over 55 chose to release wealth from their property, up 23% from a year earlier. The number of plans of new equity release, for over 55s, also rose by a fifth.

Everyday spending

Cost-of-living pressures continue to be the main prompt for people choosing to release equity. With household budgets stretched, equity release for over 55s is a convenient choice for many older homeowners trying to meet rising bills.

Last year, more than half of new customers opted for lump sum plans, up from 43% in 2021. The average lump sum received was £128,382 in the final quarter.

Greater flexibility

The popularity of equity release for over 55s reflects recent improvements for consumers. For example, in March 2022, a new regulation was introduced to guarantee that all new plans with Equity Release Council approval give customers the right to make voluntary, penalty-free partial repayments to reduce interest costs.

The best for you

When considering equity release for over 55s, it is important to weigh up your options and make sure it is suitable for your unique needs. Get in touch today to see how we can help with equity release for over 55s.

Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering mortgage advice, early retirement advice, pension advice and more.

We see clients across Sussex and Kent, including Eastbourne, Uckfield, Lewes, Brighton, Tunbridge Wells, Hastings, Bexhill, Newhaven, Seaford, Crowborough and further afield.

Why not read our VoucherFor reviews to see what our clients have to say?

¹Equity Release Council, 2023

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home. Equity released from your home will be secured against it.

It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.

It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.

The information contained within the blog is for information purposes only and does not constitute financial advice.

The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.