As more older homeowners choose to release equity in response to cost-of-living concerns, the sector is expected to keep increasing in the coming years.
Almost six in 10 introducers now expect the equity release side of their business to grow over the next three to five years1 . This finding follows hot on the heels of data showing new equity release lending hit £1.5bn in Q3 20222 , with 29%more plans taken out by the end of September than a year previously.
Equity release products provide access to equity that is locked up in the value of your home. There are many reasons why you might decide to access this, though pressing needs and day-to-day spending are currently more prevalent than discretionary spending. Indeed, repaying debts (31%) and mortgages (24%) are the key reasons people are choosing to release equity. Supporting family members (20%) is also common, while funding home or garden improvements (up 3% year on year) and paying for holidays (up 7%) are both on the rise too.
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Equity release is not suitable for everyone. It is vital to take financial advice to make sure this is the most suitable option for your individual needs – we’re happy to help. Equity Release / Lifetime Mortgages / Home Reversion Plan will reduce the value of your estate and can affect your eligibility for means tested benefits.
Prestige Financial Advisers does not offer advice Equity Release / Lifetime Mortgages / Home Reversion Plan. If you require this type of finance, we can refer your inquiry to a broker who specialises in this field
- Key Partnerships, 2022
- Key Later Life Finance, 2022
🚨 Data accurate as of the date of publication –……
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q1 2023