Equity release loans market in the UK has increased in the last quarter of 2005. The value of equity release loans in October, November and December last year was £282 million as compared to £273 million in the previous quarter. The value of equity release loans taken out in the last six months of 2005 was 13% more than that in the first six months.

The business of equity release loans has increased manifold in the last one decade. The main purpose to take out an equity release loan is to augment the monthly income. Low interest rates have prompted the retired homeowners to take out equity release loans. Because of low interest rates, the retired people are not getting a good return on their savings.

If you are a retired homeowner, you can take out an equity release loan against a part of your house or the entire house. Your family members cannot inherit the house because the lender can sell off the house after your death.