Analysis: Tipping point for equity release

Sharpe

The equity release industry has reached a tipping point. According to latest figures from the Equity Release Council, there was a 29 per cent growth in the amount released through lifetime mortgages in 2014 compared with the previous year and it is very likely that rate of growth will continue.

More people are interested in exploring ways they can unlock wealth and generate income, which has led to an unprecedented period of innovation, from the introduction of capital and interest-paying loans to fixed early repayment charges on products.

There is a clear commercial imperative for advisers to add equity release to the products they are qualified to offer. Lending across the UK reached £1.4bn last year, the highest ever recorded, according to the Equity Release Council. This comes as the MMR has led to more people being rejected by mainstream lenders due to their age. If equity release is on the cusp of something big, why would advisers not want to be a part of it?

At the same time It is down to all of us to demystify the perceived complexities and present the benefits as plainly as possible.

Recommended

Cover

Cover story: Who knows best?

Thanks to the internet, financial consumers are far better informed than their predecessors. But brokers’ expertise goes way beyond the web so they must keep demonstrating their worth

House-Home-Ad-In-Paper-700.jpg

April’s average asking price is highest on record

The average UK property asking price rose by 4.7 per cent year-on-year in April to £286,133, according to Rightmove. The annual rate of inflation fell from 5.4 per cent in March but April’s average asking price is the highest on record. On a monthly basis, asking prices were up 1.6 per cent, a rise of […]

Curran_Peter_Countrywide_2015

Countrywide: Curran joins as Batchelor quits

Lloyds director of strategic partnerships Peter Curran is set to join Countrywide while Guy Batchelor will leave his role as managing director of corporate business. Curran will leave Lloyds on 30 April and be replaced by Ian Wilson, head of Halifax Intermediary, on an interim basis while a permanent replacement is found. He will report […]

Morris

Precise in new-build push with creation of dedicated mortgage desk

Precise Mortgages is set to create a new-build mortgage desk as it aims to boost its presence in that area of the market. Mortgage Strategy revealed in March that the lender planned to create a dedicated new-build desk. The lender says it is also planning a number of new-build product developments, although it has not […]

Parental leave and pensions

Fiona Hanrahan  – Senior Product Insight and Technical Support Analyst We are often asked how parental leave impacts workplace pension schemes in terms of funding in general, auto enrolment and salary exchange. This article will explain each of these. How does parental leave impact the funding of workplace pension schemes? A member of a defined […]

Newsletter

News and expert analysis straight to your inbox

Sign up