Against all odds, the equity release sector in the UK is experiencing another record-breaking year. That's despite the value of property dipping slightly in 2021 and the Covid-19 pandemic still largely affecting the country.
LONDON UK / ACCESSWIRE / August 25, 2021 / As over 1 million UK residents have said they'll need to postpone retirement due to Covid-19, homeowners over-55 used equity release to unlock a significant £1.17bn of property wealth during Q2 2021, up 2% from Q1 (£1.14bn). These figures are a massive jump from the mere £698m in Q2 last year, during the first Covid-19 lockdown. That's 67% less than its 2021 counterpart.
The experts at SovereignBoss, an equity release firm, believe that this significant growth will continue to rise in the 36 months that follow, as more homeowners continue to look for ways to retire on time.
The battle of the Covid-19 pandemic continues, as the UK sees a slight rise in recent cases. To date, more than 6,392,00 UK residents have tested positive for Covid-19, with a total recorded death rate of over 131,000. Despite more than 47 million people having received their first or both vaccine doses, the uphill battle is not yet over. Residents are now looking for ways to supplement their incomes.
Lifetime mortgages in 2021 reached an impressive £89,758, which can be attributed to larger loan sizes. Many customers are taking advantage of their swell in equity brought on by the overall rise in property prices. Wealthier customers are, on average, now more interested in releasing equity from expensive homes than ever before, possibly indicative of a decrease in cash-wealth.
However, due to travel bans, a shift in priority, and other Covid-19 restrictions, fewer customers use equity release to fund other lifestyle purchases like international trips. Instead, many choose to focus on paying up existing mortgage debt and lending money to friends and family members to support them in these trying times.
Interestingly, the equity release market in 2021 has experienced 27% lower sales volumes when compared to the same time this year (2020). However, keep a lookout, as the number of customers is expected to rise by another 10% during the following quarters of 2021.
A full report can be found at Sovereign Boss' official website. The article delves into how the industry holds steady in 2021 by looking at a detailed statistical analysis of the current equity release market. In addition, you can find a comprehensive look at how Covid-19 has impacted retirement, and some creative ways to increase your income during these times. If you want to keep your figure on the pulse of the financial sector, the site has the most comprehensive equity release stats research available.
For more information, visit COVID-19's Impact on UK Retirement.
'With people living longer on average, there is little wonder why this figure has increased so dramatically. While equity release does have its pitfalls, with the rising cost of living, it could be the perfect way to help UK retirees relax in their golden years.' Said the CEO of SovereignBoss.
He added, 'It's important for those seeking equity release to be aware of both the pros and cons of various schemes available. Make sure that the plan suits your needs and lifestyle before opting for it. We're here to help people make the right choices.'
About SovereignBoss
SovereignBoss educates about equity release and pension plans. The company helps individuals, businesses and organisations find suitable custom equity release and UK pension transfer solutions. SovereignBoss works with clients to find the best equity release provider, which can help save time and money rather than dealing with high tax bills.
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SovereignBoss
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SOURCE: SovereignBoss