The total amount of money freed up by homeowners through equity release schemes was £245.01 million in the first quarter of 2009, new figures have shown.
Data unveiled by Safe Home Income Plans (Ship) revealed that the average value generated by these agreements rose from £41,718 to £48,287 year-on-year.
This was due to people looking towards their properties as a means of boosting finance as savings interest fell and the economy worsened, the organisation noted.
Equity release also showed a “strong” performance when compared to mortgage lending, it added.
“It is encouraging to see how resilient the equity release market is, especially when you consider the fact that consumers have become increasingly cautious,” commented Ship director general Andrea Rozario.
Recently, Prudential revealed that homeowners aged 65 or over have a total of £611.5 billion of equity tied up in their properties, despite the falling house prices being seen in the UK.
By Jamie Price