The figures, based on returns from 21 lenders active in the equity release market, show a rise of 121% over the same period last year.
The CML estimates that 11,700 new equity release mortgages were taken out between January and June, at an average value of £43,000. According to the CML, this means that the number of outstanding equity release loans is now 53,000, with a total value of £2.3 billion.
This represents less than half a per cent of the total residential mortgage market. But despite its modest share of total lending, the CML continues to see equity release as a growth market. This view is underpinned by the fact that older households are increasingly "asset-rich, cash-poor". Industry estimates have previously suggested a realistic potential market size of £50-£100 billion.
Michael Coogan, CML Director General, said: "Older people are increasingly in a situation where most of their wealth is tied up in their home. Equity release can make a lot of sense for some of these owners, especially if they do not wish to move or trade down. The key priority is to make sure that these borrowers, some of whom may be vulnerable, truly understand the nature of an equity release mortgage."
