View more on these topics

Leader: Make equity release work

Leader121114

Each year you hear experts predict this is the year that the equity release sector will take off although the expected boom has never come.

Many consumers have long been sceptical of the sector. This could be down to a lack of understanding of how the products work, the cost of such plans and the poor reputation the sector had in the past.

But it has made steady progress in recent years, with total lending up 16 per cent between 2012 and 2013.

And earlier this month high-street giant Santander admitted it was assessing whether to enter the sector. So too is Legal & General.

Further, Equity Release Council chairman Nigel Waterson predicts a raft of new entrants over the next 18 months, some of which being household names.

Why is this? Waterson believes the MMR is partly responsible as criteria for lending to older borrowers has tightened. Others suggest an ageing population and the mandatory guidance being introduced as part of the Government’s new pensions freedoms will mean take-up of equity release plans will improve.

But this is not a forgone conclusion. The introduction of guaranteed guidance on retirement options does not automatically mean people will take up the option of releasing equity in their home. There are, of course, alternatives to a lifetime mortgage or home reversion plan.

However, the conditions for growth have never been better. It is now down to providers and advisers to work together to make sure products are developed which meet the needs of those now at or entering retirement.

Recommended

handshaking agreement
3

Mortgage Strategy editor wins prestigious journalism award

Mortgage Strategy editor Paul Thomas won trade journalist of the year at last night’s prestigious Santander Media Awards. Last year, Thomas came runner up in the same category but walked away with article of the year for breaking the launch of Help to Buy, a month before it was announced in the Budget. The judges […]

Handshake-Business-Finance-Deal-Corporate-700.jpg

Kensington appoints ex-Barclays head of accounts Sarah Green

Specialist lender Kensington Mortgages has appointed former Barclays head of national accounts Sarah Green as its new head of sales and marketing. Green’s departure from Barclays was announced in May as part of an internal restructure, two months after managing director for intermediaries David Finlay left the lender.  Prior to her time at Barclays, which she joined […]

Santander-700x450.jpg

Santander raises lending levels

Santander lent 59 per cent more in the first nine months of 2014 than it did in the same period last year.  According to the lender’s latest quarterly management statement, published last week, Santander advanced £20.5bn between January and September this year, up from £12.9bn a year earlier. Some 20 per cent of gross lending, […]

Tackling the housing crisis will take more than money

The latest housebuilding figures from the Department for Communities & Local Government confirm the worst fears of many within the property industry. We are failing to address the housing shortage in any meaningful way. Let’s look at the number of housing ‘starts’, new housing projects where work has begun. In England, work has been started […]

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