Equity release market is regaining momentum

What are the benefits?

Statistics5 indicate that the equity release market is regaining momentum and 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.” It looks like the equity release market is regaining momentum.

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 voluntarily 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 with the equity release market regaining momemtum. A survey6 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.

We work with a partner broker for equity release, lifetime and reversion mortgages, please get in touch if you need some advice.

Some Buy to Lets are not regulated by the Financial Conduct Authority
5 ERC, 2023, 6 L&G, 2023

Source Quilter Essentially Mortgages Q1 2024