Older homeowners flock to equity release, ERC data shows

Data for the first half of the year showed 58% of new equity release contracts sold were taken out by older homeowners. Total lending was up 11% to £710m. It stood at £641m in the first half of last year. A quarter of new plans sold during H1 were bought by over 75s, with 22% aged between 75 and 84. Over 85s accounted for 3%. Customers aged 55 to 64 accounted for 18% of new plans, down from 20% in the second half of last year. Drawdown lifetime mortgages are the favoured method of equity release. The ERC said these accounted for 65% of new plans agreed in the first half of th...