London, UK - 5 July, 2024 - Equity release customers have saved nearly £300 million in borrowing costs through voluntary penalty-free repayments over the past two years, according to new data from the Equity Release Council. Over 360,000 such repayments were made in 2022 and 2023, reflecting the increasing trend among homeowners to manage their equity release loans proactively.
This significant achievement highlights the evolving landscape of equity release products and the growing awareness among customers about the financial benefits of early repayment. With modern equity release products offering greater flexibility, homeowners are taking advantage of these features to reduce their overall borrowing costs and enhance their financial security.
Tom Philips from Equity Release Warehouse and Equity Release Calculator commented, "This substantial savings milestone underscores the flexibility and benefits of modern equity release products. By making voluntary repayments, customers significantly reduce their long-term borrowing costs, enhancing their financial stability and preserving inheritance. This trend demonstrates a more financially savvy approach among retirees, who are now better informed about managing their finances in later life."
The report from the Equity Release Council reveals several key findings:
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Increase in Total Repayments: The total value of voluntary repayments saw an 18% increase, rising from £102 million in 2022 to £120 million in 2023. This growth indicates a rising awareness and willingness among customers to take proactive steps in managing their equity release loans.
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Rise in Average Repayment Size: The average size of repayments also saw a notable increase, climbing 30% from £538 to £697. This suggests that more customers are making larger repayments to reduce their loan balances more quickly.
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Penalty-Free Repayments: Since March 2022, all Equity Release Council standard products have included the option for penalty-free voluntary repayments. This feature has been instrumental in allowing customers to manage their borrowing more effectively without incurring additional costs.
The flexibility to make these repayments, without penalties, is a testament to the industry's commitment to customer-centric policies. The ability to repay voluntarily gives homeowners the power to control their debt levels and reduce interest accrual, ultimately saving them significant amounts in borrowing costs.
Tom Philips further noted, "The introduction of penalty-free repayments has been a game-changer for the equity release market. It provides customers with the flexibility to adjust their borrowing according to their financial situation, making equity release a more attractive and viable option for many retirees."
As the equity release market continues to evolve, the focus remains on providing products that offer flexibility, transparency, and financial benefits to customers. The Equity Release Council and its members are dedicated to ensuring that customers are well-informed and have access to products that meet their financial needs and goals.
Media Contact
Company Name: Equity Release Warehouse
Contact Person: Tom Philips
Email:Send Email
Phone: 292929292
Address:17 Raddle Wharf
City: Ellesmere Port
State: Cheshire
Country: United Kingdom
Website: https://www.equityreleasewarehouse.com/
