Equity Release market responds to cost of living crisis

18th September 2023

The equity release market continues to adjust to the economic climate providing products to help customers access the finances they now need.

The cost-of-living crisis has affected everyone; individuals, self employed and businesses of all sizes. The equity release market is witnessing a new wave of customers who are turning to later life lending because they now ‘need’ the money rather than ‘wanting’ to have more accessible wealth.

In response, the equity release market provides new product solutions and more access to later life lending products that could potentially meet customer needs.

It seems that nowadays many people have insufficient pension wealth or income but big interest only mortgages that need to be repaid and which are much higher, on average, compared to a few years ago. Where customers have no alternative means of responding to this predicament, equity release could be a welcome solution. For a UK homeowner, aged 55+, equity release (also known as lifetime mortgage plans) could allow them to enjoy retirement to the full. The plans allow customers to unlock money tied up in their homes as a tax-free lump sum to use as they need. This has to be balanced against the ultimate potential reduction to the eventual estate and It is vital therefore, that anyone considering equity release talks to an experienced, qualified expert who is regulated by the Financial Conduct Authority. It is important to seek unbiased, whole of market, advice from a professional who will only ever suggest equity release if it is truly the right option for the customer.

Looking ahead, with interest rates hopefully falling and property prices stabilising, the equity release market will continue to respond to customer needs and provide product innovations to help them with their financial futures. The market may seem smaller nowadays, but it continues to thrive in a new and different direction and is still the lifeline that so many people can greatly benefit from.

Source: https://www.mpamag.com/uk Sept 15 2023

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

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

Providers include

Pure Retirement

Equity release will reduce the value of your estate and may also affect your entitlement to means-tested benefits. You should always think carefully before securing a loan against your home.

Unless you decide to go ahead with a plan, our service is completely free of charge, as our fixed advice fee of £1,695 is only payable on completion of a plan.

A lifetime mortgage is the most popular form of equity release, and is a loan secured against your home that’s typically repaid when you pass away or go into long-term care.