Rising rates of interest deterred many debtors from releasing property wealth throughout 2023, in response to the Fairness Launch Council (ERC).
The commerce physique stated that complete annual lending was £2.6bn in 2023 following a record-breaking £6.2bn in 2022.
This 58 per cent fall in lending takes lending volumes within the sector again to ranges final seen in 2016/7.
Final 12 months noticed 64,448 energetic prospects taking out new plans, making use of drawdown reserves or agreeing extensions to current plans, which was down 31 per cent year-on-year.
Fairness launch debtors have been ‘cautious within the face of upper rates of interest’ stated the ERC.
Finish of 12 months dip
There have been 13,651 fairness launch prospects within the final quarter of the 12 months, down from 17,078 in quarter three of 2023 and from 20,597 within the final quarter of 2022.
The typical quantity borrowed by new prospects within the final three months of the 12 months was £79,484, in comparison with £106,917 a 12 months earlier.
David Burrowes, chair of the Fairness Launch Council, stated: “Each nook of the mortgage market noticed rising rates of interest put the brakes on exercise in 2023, and fairness launch was no exception with prospects and their advisers taking a cautious method.
“This resulted in mortgage sizes shrinking and fewer individuals borrowing for extra aspirational causes.
“It’s clear some individuals are holding out for future price cuts, however with no timeline as to when this may increasingly occur or how sustained this will probably be, older owners might want to proceed to think about what is true for his or her particular person circumstances. Many individuals are counting on their property wealth to retire in consolation, and we’re targeted on making certain they’ll entry it confidently and securely.”