Meanwhile, the sector’s voluntary body Safe Home Income Plans (SHIP) has announced 59 per cent growth in the sector over 2003.
Figures supplied by SHIP showed £1.16 billion was lent out on equity release and home reversion schemes last year, up from £851 million the previous year.
Mortgage Express has been able to build a picture of lifetime mortgage customers. Its figures show that the majority (73 per cent) are joint applicants with the average age of borrowers at 69. The average loan-to-value is 29 per cent.
Commenting on the growth in the market, Roger Hillier, product development manager at Mortgage Express, said: “It is a clear sign that older people will increasingly be looking to unlock equity in their home to make the most of their retirement years.”
Meanwhile specialist lifetime mortgage intermediary, Key Retirement Solutions estimate that the current value of equity available within the retired population has now topped £1 trillion.
Dean Mirfin, business development director at Key Retirement Solutions, said: “The two main reasons people take out equity release are for home improvements and to boost their incomes. Other incentives include gifts given as an early inheritance and funding for private medical health care.”
