Equity release at first-quarter high

Equity release loans continued their ascent into record territory in the first three months of 2015 with total lending of £325.7m, the highest recorded figure for the period.

Lending increased by 3 per cent on the same period in 2014, representing an additional 5,000 customers.

Nigel Waterson, chairman of the Equity Release Council, which represents lenders, said: "These figures show that the appetite for equity release continues to grow despite the potential uncertainty to people's financial planning decisions caused by the recent pension access reforms."

The average loan size was also at record levels, with each customer taking out an average £66,747 in lending.

Drawdown was the most popular form of equity release scheme, accounting for 59 per cent of lending in the quarter.

Steve Wilkie, managing director at equity release specialist Responsible Equity Release, said tighter mortgage regulation had spurred growth in the sector. "We continue to see a steady stream of people who are struggling to remortgage their properties in retirement and are using equity release to pay the outstanding balance."

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