Equity Release Council Reports Record Household Overpayments in 2022

Equity Release Council Reports Record Household Overpayments in 2022

The Equity Release Council (ERC) recently released a report showing that household overpayments on equity release products have reached a record high in 2022. This is a significant milestone for the industry, as it indicates that more and more people are taking advantage of the financial benefits of equity release.

Equity release products allow homeowners to access the equity in their home without having to sell it. This can be done through a variety of methods, such as lifetime mortgages, home reversion plans, and drawdown mortgages. The ERC report found that overpayments on these products have increased by almost 10% in the last year, with the total amount of overpayments reaching £1.3 billion.

The report also highlighted the fact that more people are using equity release products to fund their retirement. This is due to the fact that many people are living longer and need additional income to support themselves in their later years. The report found that the average age of equity release customers is now 73, which is an increase of two years since 2020.

The ERC report also noted that the number of people taking out equity release products has increased significantly in the last year. This is due to the fact that more people are becoming aware of the financial benefits of these products and how they can help them in retirement.

Overall, the ERC report shows that equity release products are becoming increasingly popular among homeowners. This is due to the fact that these products offer a range of financial benefits, such as providing additional income in retirement and allowing homeowners to access the equity in their home without having to sell it. The report also highlights the fact that more people are taking advantage of these products, which is resulting in record levels of overpayments.

Leave a Reply

Your email address will not be published. Required fields are marked *