Swedish retirees release equity more than ever before
The interest in Hypotekspension, the leading Swedish equity release loan provider, reached record-breaking levels in 2019. Over 2,000 pensioners who own their home increased their cashflow by taking out such a loan. Total new lending amounted to SEK 1.34 billion, representing 66% more than in 2018.
The most common uses of the money were home improvements and supplementing income for everyday expenses. Many customers gave their children or grandchildren an “advance inheritance” and others spent the money on travel or a new car.
“The increase in demand is mainly due to the fact that more and more people have discovered that this possibility exists. We placed a strong emphasis on marketing during 2019 and we have also made Hypotekspension available to more people. Many elderly people find it difficult to get ordinary mortgages and many people appreciate not having to pay interest and amortization every month”, said Nils Ingvarson, Head of Marketing Communications at Svensk Hypotekspension.
Hypotekspension is the first and leading equity release loan provider in the Swedish market. Customers span a broad spectrum of people aged over 60, with single people in their early 70s living in condominiums representing a high proportion of these.