Equity release market regaining momentum?

23 February 2024

Statistics [1] indicate that the equity release market is slowly recovering after a rocky few years.

Despite lending activity being at the same low levels as H1 of 2017, there are signs of growth. In the third quarter of last year, new equity release customers rose by 10% and total lending increased by 8% to £716m. In that same period, there were 17,078 new and existing customers using equity release products.

David Burrowes, Chair of the Equity Release Council (ERC), commented, “While the clock has been wound back on lending activity and loan sizes, product innovation has increased the flexibility of lifetime mortgages.”

Benefits of lifetime mortgages

Lifetime mortgages are the most common form of equity release, allowing those over 55 to benefit from the value of their home without having to sell. Certain products now allow customers to take out extra loans and make voluntary repayments without fearing their home will be repossessed if they are no longer in a position to pay the money back.

Supporting younger generations

Recently, an increasing number of people have been using the money they have unlocked to support their family members. A survey [2] found that 18% of parents and grandparents who helped younger generations onto the property ladder used their own property wealth to do so (via equity release, downsizing or re-mortgaging).

Before releasing equity on your property, it is important to consider the pros and cons, it’s not suitable for everyone.

[1] ERC, 2023,

[2] L&G, 2023

🚨 Data accurate as of the date of publication – 23.02.2024

🚨Think carefully before securing debts against your home.  Your home may be repossessed if you do not keep up repayments on your mortgage.

🚨Some Buy to Lets are not regulated by the Financial Conduct Authority.

🚨 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.

 

Na podstawie: Quilter Financial Planning – Essentially Mortgages Q1 2024

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