The firm reported that sales in the first quarter of 2013 had reached 4,567, virtually flat compared to the same period last year when 4,508 equity release products were completed. The number of plans sold in each individual month was also flat.
The South East continued to prove the most popular area for equity release with nearly 1,000 plans sold, compared to just 23 sales in Northern Ireland during the first quarter.
The average loan size has jumped 27% in the past year with customers taking out an average loan of £56,710, 27% up on 2012’s £44,519.
Dean Mirfin (pictured), group director at Key Retirement Solutions, said: “The increased use of lump sum lifetime mortgages is significant as it shows the growing confidence in using property wealth and success for ongoing innovation, higher advances are increasingly needed to help clear outstanding mortgages.
“That is reflected in the increase in the average amount being released in response to the continuing squeeze on pensioner income from low savings rates and falling annuity rates. The average amount released for the whole of 2012 was £52,268 which in turn was 7% up on 2011.
“Equity release has a major role to play in tackling the issue of funding interest-only mortgages into retirement. The launch of plans enabling clients to continue to pay interest and at any time switch to roll up interest has boosted use of lifetime mortgage plans and there is more innovation to come.”
