There has been a 21 per cent increase in sales of equity release plans at Newcastle Building Society compared to a year ago.
In addition, drawdown schemes are showing continued popularity because of their flexible nature, the organisation noted.
The amount of time between a customer enquiring about an equity release policy and completing the deal has also reduced by 35 per cent over the past year.
Retail sales executive Bob Mottershead said that this was due to customers becoming more informed about the benefits of releasing equity from their homes.
He added that the sector “is surviving the credit crunch and in some instances is witnessing growth”.
People have several reasons for carrying out equity release, including home improvements and holidays, Mr Mottershead claimed.
Meanwhile, parents are cutting back on personal luxuries in order to put money aside for their children’s future, according to Family Investments.
By Jamie Price