, Yorkshire and the Humber (125pc) and the South West (89pc). Overall, there were 13,341 new equity release plans in the third quarter, up 29pc year-on-year, while £1.5bn in equity was unlocked compared to £1bn for the same period last year. The popularity of equity release has remained strong despite rates on lifetime mortgages having shot up in the aftermath of the mini-Budget. Will Hale, chief executive of Key, said that just like the wider mortgage market, equity release had not been immune to the political upheaval of the last few weeks and that 'older customers moving from fixed-rate mortgage deals to their lenders standard variable rate have been shocked by the difference'. The vast majority of homeowners releasing equity did so to repay existing debts or support their family members. One in five homeowners released equity from their homes to help relatives, gifting on average of £53,503 to their loved ones, in a clear indication the cost-of-living crisis is driving families to seek financial help from parents and grandparents. In total, homeowners unlocked over £80m to help their loved ones get on the property ladder. Financial adviser Andy Wilson said this strategy could save younger buyers from 'much larger mortgages and higher costs' given today's sky-high mortgage rates. Despite the impact of the cost-of-living crisis, there was a year-on-year increase in the number of people using the proceeds from equity releas){kind=link}
More than £400m of housing equity was unlocked between July and September
Older homeowners in the Home Counties and the capital are cashing in on the pandemic property boom before house prices fall – taking out close to half of all equity release loans.
The South East and London accounted for 46pc of all equity released from properties between July and September, as homeowners in these regions raided their homes to generate cash.
The South East unlocked the most equity at £414m, followed by London at £292m, according to lender Key Later Life Finance. By comparison, homeowners in the South West withdrew £182m from their properties in all.
It comes as house prices have started to fall after years of growth. London and the South East continue to have the highest house prices in the UK – with the average value of a house in these areas now £553,849 and £406,981 respectively, according to lender Halifax.