It was the case that those aged between 60 and 64 accounted for 25% of ERS clients, with 23% aged 65-69 and 19% aged between 70 and 74.
However, more ERS clients are now aged between 55 and 59 than within the 75 to 79 bracket (13% vs 11%).
The types of plans taken out were also reflective in the desire to borrow a single lump sum – to repay a mortgage, make a property purchase or pay a debt for example.
Throughout the year, a lump sum plan proved to be the most sought after, with Q1 of this year representing 57%, Q2 equating to 60%, Q3 equalling 58% and the year-to-date coming in at 58%.
In Q1, ‘repay mortgage’ was the reason 23% took out their plan; in Q2 it amounted to 19%); and in Q3 24% took out a plan to repay a mortgage.
Drawdown plans come in just behind lump sums, in second place. In Q1 this year they represented 35%, Q3 hit 31% and year-to-date equated to 33%.
Similarly to last year, ERS also noted that London and the South East were the most buoyant areas for demand, accounting for 37% of plans in Q1, 34% in Q3 and 35% year-to-date.
When it comes to regional property variances, London remained top of the charts with the average release reported at £227,000 year-to-date, twice the national average of £113,000. The North East borrowed the least, standing at just £56,000 so far in 2021.
Mark Gregory, founder and CEO at Equity Release Supermarket, said: “Now that the lockdown restrictions have come to an end, Equity Release Supermarket’s customers have returned to face-to-face advice, growing from 9% in Q1 of this year to 28% in Q3 and 20% year-to-date.
“Business has increased each quarter as we’ve moved out of lockdown, with the total amount clients release also rising in line with the general confidence in the market.
“The need for great flexibility for spending equity has evolved over the past 18-months and we’ve seen consumer behaviour continuing to change.
“In fact, interestingly our clients were not borrowing more just to take advantage of the Stamp Duty Holiday on house purchases. Instead, money released this year has been influenced by a combination of the Stamp Duty Holiday, the desire to support children financially and a need to reduce stress on outgoings.”
