Equity Release is where homeowners aged 55 and over, can withdraw equity tied up in their homes. This equity (money) can be used for things like home improvements, a new car or even a holiday of a lifetime. Due to the equity being tax-free, it has become a popular avenue for homeowners; especially as they retain the right to live in their home despite accessing the scheme.
Equity release gives retirees £8m per day
‘Pensioners accessed £3bn in housing wealth in 2017’ (Which, 2018).
Huge increase in equity release
‘The number of older people raising money by using the value of their home grew 40% last year. Altogether more than £3 billion of the equity in their homes was released. A record amount and a record rise’ (BBC, 2018).