Large Jump In Equity Release Loans
Over the course of the past few years, equity release loans have grown in popularity amongst those people approaching or entering retirement, as a way of supplementing income, or paying off existing loans and other debts.
Just Retirement, a specialist lender in the equity release loan sector has just announced that it has seen a huge increase in its level of sales over the course of the first three months of this year, as more and more people are using equity release loans for an increasing number of reasons.
The loan company has seen the number of loan advances increase by 6.3 per cent so far this year, but have also seen a huge rise in loan numbers of 70.8 per cent since the same time twelve months ago.
With many people not receiving the amount of pension income which they may have expected at retirement, a growing number of individuals are having to find alternative ways of supplementing their income and with interest rates being as low as they have been for the last two years, savings in the building society are not providing the required level of income.
Apart from using equity release loans to supplement income in retirement, more and more people are using them to repay outstanding debts, such as home owner loan balances, or unsecured loans and credit cards.
There has also been significant growth recently, in the number of people taking out an equity release loan in order to help their children, or grandchildren with a deposit for a house of their own, effectively handing down equity through generations.
Rodney Cook of Just Retirement said “Equity release sales have grown significantly during the last quarter and are 70.8 per cent higher compared to the same period last year.”
