The changing face of Equity Release

5th December 2016

Customers are utilising the empowering nature of Equity Release for interestingly different reasons as the years go by, says Kevin Woods.

The last quarter saw about half of all equity release customers using the products to clear their mortgages. That is a 6% increase on the year before, and is a reflection of the number of interest-only mortgages set to mature after 2020. The media has called it an interest-only time bomb, and lifetime mortgages are a sensible solution for many customers.

Contrastingly, about 16% of equity release products are sold to cover living expenses, a reflection of the decline of occupational pension schemes, the inadequacy of many existing schemes and our greatly increased life expectancy. About a third of customers are clearing unsecured debts with equity release, since about 40% of over-45s have outstanding debt, and some 15% have outstanding credit card and store card debts.

Again, by contrast, 13% of customers are purchasing a new property through equity release. Many find that trading down is not an option, with no suitable property available in the right area. In these cases, equity release is an excellent way to bridge the gap between the value of their current property and their intended one.

There is little doubt that the equity release market will continue to mature and flex with the demands of the marketplace and most importantly the needs of our customers. There is also no doubt that it will continue to offer the answers to what would otherwise be thousands of insoluble financial challenges.

Why not get in touch and see how we can help?

Equity release is the answer to so many financial questions. If you would like to know more about it, and see if it could be the right move for you, please book an appointment or request a call-back