Equity release market set to hit £3bn this year.

Homeowners are expected to access £3 billion of their housing wealth through equity release this year for the first time ever.

Research by the Equity Release Council reveals some £1.4 billion of lending was conducted in the first half of the year.

That is up from £900,000 in the first six months of 2016.

The latest Equity Release Market Report shows that innovation in the sector has seen the number of products available more than triple to 78 over the past ten years.

Meanwhile, increased competition has seen the average interest rate on products drop to a new low of 5.3 per cent. A year ago the typical rate was 5.96 per cent.

Brits have £2.3tn of wealth tied up in their homes, and many are choosing to tap into it in later life.

Retirement Advantage Equity Release head of marketing Alice Watson says: “Those over the age of 55 increasingly view their housing wealth as something they can draw on to fulfil their desired standard of living, especially in retirement.

“People want to release money in a way that suits them and that they’re comfortable with. The response has been an explosion of equity release product innovation.”