The annual figure is a 33% rise on the pre-recession peak of £1.21bn seen in 2007, according to the Equity Release Council (ERC).
Some £271m was released through drawdown products in Q4 2015, the highest quarterly total since this type of lifetime mortgage emerged in 2004. It was also a 22% increase compared to the same period in 2014.
Lending in H2 2015 totalled £898m, an increase of 21% compared to the previous half-year record of £741m seen in H2 2014.
Last year saw over 22,500 plans agreed for the first time since 2008, with drawdown lifetime mortgages accounting for 66%, lump sum lifetime mortgages 34% and home reversions below 1%.
Nigel Waterson, chairman of the Equity Release Council (ERC), said: “Housing wealth is often people’s greatest asset and it makes sense for equity release to be on every homeowner’s checklist to consider as part of their retirement and estate planning.”
He added that supporting advisers as the market grows will be a top priority for the council this year.
“Looking ahead, the challenge is to continue developing products which meet consumer needs while ensuring that innovation is combined with protection and long-term sustainability,” he said.
