Equity Release Warehouse Comments on Positive Q3 2024 Lending Figures

Equity Release Warehouse celebrates the Q3 2024 equity release growth, highlighting increased consumer confidence and stable interest in drawdown products amid high interest rates. Expert Tom Philips notes rising average loan sizes due to higher property values and anticipates further sector growth if economic stability persists. The company remains dedicated to guiding homeowners in maximizing property wealth for financial security.
In response to the Equity Release Council's recent Q3 2024 lending figures [https://www.equityreleasecouncil.com/news/council-publishes-q3-2024-lending-figures/], Equity Release Warehouse has expressed optimism about the continued growth in the equity release market. The data reveals a second consecutive quarter of growth, a significant milestone following a challenging period for the industry. Lending in Q3 rose by 6% from Q2, with total loans reaching 615 million-a promising signal of renewed consumer confidence.

Tom Philips, equity release expert at Equity Release Warehouse, remarks, "This two-quarter growth is a crucial development for the market. With new plans up by 2% and returning drawdowns also showing stability, it's evident that homeowners over 55 are increasingly recognizing the benefits of tapping into their housing wealth. The market has faced volatility, especially since the 2022 mini-Budget, but this consistent upward trend is a clear sign that equity release remains a viable financial solution for many older homeowners."

The Equity Release Council's data also highlights changes in loan preferences. Drawdown products, chosen by 53% of new customers, indicate a cautious approach to borrowing, allowing customers to reserve funds for future use rather than taking large lump sums upfront. Philips observes, "The preference for drawdown options suggests that customers are mindful of managing their interest liabilities, especially in a high-interest-rate environment."

Interest rates have undeniably shaped borrowing behavior in 2024. While rates have not soared, the current levels remain elevated compared to previous years. Philips notes, "Interest rates have been a critical factor in customers' decision-making. Many are waiting to see if rates will stabilize before committing to large loans. However, the adaptability of today's equity release products-with features like flexible repayment options and customizable loan-to-value criteria-provides peace of mind for those ready to proceed despite rate uncertainties."

According to the Council's report, average loan sizes have grown, reflecting the increased property values observed this year. For instance, lump-sum lifetime mortgage customers now borrow an average of 111,618, up by 1% from last quarter. This increase is attributed to rising house prices, which have climbed steadily since early 2024. "As property values rise, homeowners have more equity available, allowing them to borrow larger sums without significantly impacting their ownership," says Philips. "It's encouraging to see customers leverage this growth to secure their financial futures, whether for retirement planning, home improvements, or family gifting."

Looking ahead, Philips is optimistic about sustained growth in the equity release sector. "If the best equity release interest rates [https://www.equityreleasewarehouse.com/help-centre/best-equity-release-interest-rates/] remain stable and the upcoming Budget brings positive economic signals, we expect continued growth through the end of the year. Equity release remains a valuable tool for homeowners seeking financial flexibility, and we're committed to supporting our customers with guidance tailored to their unique needs in this dynamic market."

With a commitment to transparency and customer-centric solutions, Equity Release Warehouse is poised to help homeowners make the most of their property wealth in a changing economic landscape.

Media Contact
Company Name: Equity Release Warehouse
Contact Person: Tom Philips
Email:Send Email [https://www.abnewswire.com/email_contact_us.php?pr=equity-release-warehouse-comments-on-positive-q3-2024-lending-figures]
Phone: 292929292
Address:17 Raddle Wharf
City: Ellesmere Port
State: Cheshire
Country: United Kingdom
Website: https://www.equityreleasewarehouse.com/



This release was published on openPR.