According to figures from the Financial Conduct Authority (FCA) obtained by Quilter, the number of lifetime mortgage sold in March 2022 totalled 5,052, a 29 per cent increase on the same month last year.
This compares to the 3,930 lifetime mortgages which were sold across all loan to value (LTV) bands last year.
Based on the first three months of this year, the average number of lifetime mortgages sold is already 31 per cent up on 2020, and 21 per cent higher than 2021.
The most popular LTV band is 10 to 20 per cent with an average of 988 mortgages sold at this tier each month since 2020.
In comparison, just 53 lifetime mortgages have been sold on average at the 50 to 60 per cent LTV tier over the same period.
Karen Noye, mortgage specialist at Quilter, said: “These figures show that equity release is soaring in popularity. While there is a place in the market for these types of products its essential that people use them for the right reasons. The cost of living crisis is biting, and it is worrying to think that people are ripping equity out of their homes just to pay their monthly bills.
“One of the benefits of equity release is that if you don’t want to leave your home then this product can allow you to release capital but still live in your property. However, lifetime mortgages do carry a significant risk that you may end up owing far more than you borrowed when the home comes to being sold.”
She added: “Therefore, you should be cautious when working out whether this product is right and make sure you seek professional advice to decide if it’s the right choice.”
