This statistic illustrates the breakdown of total new equity release plans agreed in the United Kingdom (UK)in the second quarter 2019. Equity release plans are designed to allow homeowners to access some of the value of their property without the need to sell their house and move out. A lump sum equity release plan facilities a one-off payment, whilst a drawdown equity release plan enables a homeowner to receive an initial advance, alongside an agreed amount cash facility that can be used when required. It can be seen that the share of single plan-female homeowners opting for a equity release plan was twice higher than single plans-male.

Unlock the potential of the UK equity lending market! Discover key trends, growth forecasts (2025-2033), leading companies, and segment analysis in this comprehensive market report. Explore the impact of fixed-rate loans, HELOCs, and online lending on this booming sector. Recent developments include: In February 2022, Selina Advance, a London-based fintech business, has raised USD150 million in investment to expand its home equity lending solutions to customers across the UK. The round of fundraising, coordinated by global private equity platform Lightrock, included USD 35 million in equity and USD 115 million in loans from Goldman Sachs and GGC to help the company expand across the UK., On February 2, 2022, Santander announced its decision to stop originating residential mortgages and home equity lines of credit (HELOCs) . Santander will continue to service existing home loans and lines of credit received till February 11, 2022.. Notable trends are: Raising Homeownership Rate is Driving the Home Equity Lending Market.

This statistic illustrates the average house price for equity release plan customers in the United Kingdom (UK) from the second half of 2015 to the second half of 2019, by type of lifetime mortgage. Equity release plans are designed to allow homeowners to access some of the value of their property without the need to sell their house and move out. A lump sum equity release plan facilities a one-off payment, whilst a drawdown equity release plan enables a homeowner to receive an initial advance, alongside an agreed amount cash facility that can be used when required. It can be seen that the average house price for both lump sum and drawdown customers increased steadily during this period, reaching over *** thousand British pounds in lump sum plans, and *** thousand British pounds in the drawdown plans, as of the second half of 2019.

The UK Home Equity Lending Market Report is Segmented by Product Type (Fixed Rate Loans, Home Equity Line of Credit), Provider (Banks, Credit Unions, Non-Banking Financial Institutions, Others), and Mode (Online, Offline). The Market Forecasts are Provided in Terms of Value (USD).

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Home Equity Lending Market Size 2025-2029

The home equity lending market size is forecast to increase by USD 48.16 billion, at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth, fueled primarily by the massive increase in home prices and the resulting rise in residential properties with substantial equity. This trend presents a lucrative opportunity for lenders, as homeowners with substantial equity can borrow against their homes to fund various expenses, from home improvements to debt consolidation. However, this market also faces challenges. Lengthy procedures and complex regulatory requirements can hinder the growth of home equity lending, making it essential for lenders to streamline their processes and ensure compliance with evolving regulations.
Additionally, economic uncertainty and potential interest rate fluctuations may impact borrower demand, requiring lenders to adapt their strategies to remain competitive. To capitalize on market opportunities and navigate challenges effectively, lenders must focus on enhancing the borrower experience, leveraging technology to streamline processes, and maintaining a strong regulatory compliance framework.

What will be the Size of the Home Equity Lending Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, shaped by various economic and market dynamics. Fair lending practices remain a crucial aspect, with entities ensuring borrowers' creditworthiness through rigorous risk assessments. Economic conditions, employment history, and credit score are integral components of this evaluation. Mortgage insurance (PMIs) and mortgage-backed securities (MBS) are employed to mitigate risk in the event of default. Verification of income, property value, and consumer protection are also essential elements in the home equity lending process. Housing prices, Homeowners Insurance, and property value are assessed to determine the loan-to-value ratio (LTV) and interest rate risk. Prepayment penalties, closing costs, and loan term are factors that influence borrowers' financial planning and decision-making.

The regulatory environment plays a significant role in shaping market activities. Consumer confidence, financial literacy, and foreclosure prevention initiatives are key areas of focus. real estate market volatility and mortgage rates impact the demand for home equity loans, with cash-out refinancing and debt consolidation being popular applications. Amortization schedules, mortgage broker involvement, and escrow accounts are essential components of the loan origination process. Market volatility and housing market trends continue to unfold, requiring ongoing risk assessment and adaptation.

How is this Home Equity Lending Industry segmented?

The home equity lending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Source

  Mortgage and credit union
  Commercial banks
  Others


Distribution Channel

  Offline
  Online


Purpose

  Home Improvement
  Debt Consolidation
  Investment


Loan Type

  Fixed-Rate
  Variable-Rate


Geography

  North America

    US
    Mexico


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Source Insights

The mortgage and credit union segment is estimated to witness significant growth during the forecast period.

In the realm of home equity lending, mortgage and credit unions emerge as trusted partners for consumers. These financial institutions offer various services beyond home loans, including deposit management, checking and savings accounts, and credit and debit cards. By choosing a mortgage or credit union for home equity lending, consumers gain access to human advisors who can guide them through the intricacies of finance. Mortgage and credit unions provide competitive rates on home equity loans, making them an attractive option. Consumer protection is a priority, with fair lending practices and rigorous risk assessment ensuring creditworthiness. Economic conditions, employment history, and credit score are all taken into account during the loan origination process.

Home equity loans can be used for various purposes, such as home improvement projects, debt consolidation, or cash-out refinancing. Consumer confidence plays a role in loan origination, with interest rates influenced by market volatility and economic conditions. Fixed-rate and adjustable-rate loans are available, each with its advantag

This data set contains Help to Buy: Equity Loan statistics at post code sector level. For data released from 5 March 2015 onwards, the Homes and Community Agency (HCA) have revised the completion date for the entire Help to Buy Equity Loan time series. The HCA have stopped counting payment date (when the money out is paid out by the HCA) and now report on the expected actual completion date. It is more accurate and is closer to the live situation, especially when HCA now recognise an asset based on a completion, rather than exchange and approved claim. As a result (and due to reinstating accounts) HCA have seen movement of actual completions dates. There should not be this level of difference moving forward, it was a one off activity. The figures cover the launch of the scheme on 1 April 2013 until 30 September 2016.

Monetary values represent £GBPs in thousands (k).