View more on these topics

Equity release lending hits record high

Equity release lending hit £384.3m in the second quarter, the highest figure since records began.

The latest statistics from the Equity Release Council, published this morning, show lending rose 18 per cent year-on-year from £325.6m in Q2 2014 and passed the previous three-month record of £375.4m set in Q3 last year.

Some 5,414 new customers took out equity release plans during the quarter, up 11 per cent compared with the first three months of the year and pushing the total beyond 10,000 for the first half of 2015.

ERC chairman Nigel Waterson says: “The last three months have been a landmark period for UK retirees and those approaching retirement, and equity release activity continues to grow amid a sea of change.

“There is no doubt the pension freedoms have created more options for people to consider, but the appeal of tapping into housing wealth is on the rise as older consumers seek to make use of all the assets at their disposal.

“Doom and gloom often surrounds discussions on retirement income, but while contributions to pension pots remain low, an entire generation of homeowners have been paying into property their whole lives: making it an asset that can transform their financial options beyond the age of 55.

“Anyone seeking advice on how to plan their retirement should consider their property as a valuable source of wealth.”

Just Retirement director Stephen Lowe says: “These are early days but it will be interesting to see whether there is any impact from April’s pensions reforms on the equity release market.

“Generating income remains the priority for most retirees and taking pension cash to use in the short-term has to be balanced by maintaining sufficient assets to continue generating income for the long-term. It is likely pension freedom will complement further growth in equity release sales, particularly as retirees start to take a more rounded view of their assets rather than thinking of pensions and housing assets as distinct from each other.”

Recommended

Rob-Jupp-700.jpg

Investment firm buys minority stake in Brightstar

Investment firm Omni Equity Partners has bought a minority stake in Brightstar. The size of the stake and the amount paid have not been disclosed. As part of the deal, a partner of Omni will become a non-executive director of Brightstar. The identity of this individual will be announced in the coming weeks. Brightstar chief […]

ANDREA ROZARIO

Analysis: Equity release set for more records

The future is bright for equity release but we still remain in the shade of the mainstream mortgage market. This is unlikely to change any time soon as we are, by our very nature, a fringe element of the mortgage industry.  However, our industry will become much harder to ignore. More lenders will join and […]

Bank-of-England-Panorama-BoE-700x450.jpg

Financial services heavyweights join PRA board

The Bank of England has recruited two financial services heavyweights to the board of the Prudential Regulation Authority. Former Clydesdale & Yorkshire Banks chief executive David Thorburn and outgoing Scottish Widows deputy chairman Norval Bryson will join the board from 1 September. Thorburn was previously chairman of CBI Scotland and president of the Chartered Institute […]

Gallagher_Martin_TheLendingChannel_2015

The Lending Channel hires Scotland-based BDM

The Lending Channel has hired Martin Gallagher as a business development manager. Gallagher will cover Scotland and joins the packager, which was formerly known as Blimey Loans, from Commercial First, where he has spent the past nine years, most recently as a customer account manager. Prior to this he spent four years as a key […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Close

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now