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Five things you should know about… later-life lending and equity release

By Stuart Wilson, channel marketing director, More 2 Life


1. Fastest growth

Equity release is the fastest-growing mortgage sector, displacing BTL remortgages for the first time last year. The market has had double-digit growth for five consecutive years and could break through the £3bn barrier in 2017 after more record numbers reported in H1 by the Equity Release Council.

2. Retirement lending boom

The wider retirement lending market (all lending to those aged 55+: credit cards, personal loans, residential and lifetime mortgages) is booming, being worth £65bn annually and set to reach £142bn by 2027, according to research commissioned by More 2 Life earlier this year.

3. Debt in retirement

More and more consumers face debt in retirement. Our research shows that the average 65-year-old has outstanding mortgage debt of at least £40,000 and credit card debt of £5,000–£10,000. Last year, growth in unsecured debt among the over-75s was higher than for any other age group.

4. Younger customers

The average age of the typical equity release customer is falling, with the fastest-growing cohort the under-65s. This is largely driven by the increase in maturing interest-only mortgages that customers are unable to repay due to a lack of suitable savings.

5. Housing wealth

The over-65s control around £2tn of housing wealth. The equity release market could grow to at least £5bn by 2020, due to the ageing population, more reliance on housing wealth as DB pension schemes fade, rising interest-only mortgage debt and a more holistic approach to retirement planning resulting from the pension freedoms.


Online broker opens physical office

Online and telephone-based broker Finance Advice Group has just opened a physical office. The firm wants its Nottingham office to help reach new clients and recruit more staff. Derby-based Finance Advice Group was founded in 2014 by former Derbyshire cricketer Matt Cassar (pictured, right). Cassar says he wants his firm to have a bricks and […]


Keystone sweetens buy-to-let criteria

Keystone Property Finance has enhanced its criteria for portfolio and non-portfolio landlords. The maximum individual loan available has been increased from £750,000 to £1m on borrowing up to 65 per cent LTV. A Keystone statement says the increase is designed to help a growing number of landlords wanting larger loans, particularly on more expensive property. […]


Tread carefully with lifetime lease options

Following the growing coverage of so called sell-and-rent-back deals, I’ve been approached by a number of colleagues who have come across similar plans.

Europe: banking on a recovery

Neptune video: Europe — banking on a recovery

Arguing that the eurozone crisis is over, watch Rob Burnett, head of European equities at Neptune, discuss the sectors that he’s investing in to harness the recovery. 

In the video, Burnett addresses the following: 

• The primary drivers of the eurozone’s economic recovery
• The turnaround in individual countries’ current accounts
• Sectors best positioned to harness the recovery, without offering undue exposure to risk


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