Over the last year, we have seen the equity release market continue to grow. Furthermore, market commentators now estimate that lending has reached over £4 billion. So why the continual growth?
Many feel that the growth in equity release has been driven by lender innovation. Across the whole of the later life lending market, the number of products available has more than doubled in two years. Up from 58, two years ago to 139, according to the figures in the “Autumn 2018 Equity Release Market Report” from the Equity Release Council.
People have been drawn to the market by increased product flexibility. These flexibilities now allow people to have more control of their finances in later life and with a reduction in costs. Some options offer consumers the choice to make penalty-free partial repayments of their loan. Additionally, some lifetime mortgages now include the option to ring-fence equity. This means that homeowners can now ensure that some of the value of their home is passed on as an inheritance.
These innovations have been developed within the market while maintaining the standards and protections to provide a good outcome for the client.
An ageing population.
With an ageing population, the demand for equity release is likely to continue to rise. People may be looking for ways to pay for mounting care costs, to pass wealth onto family to help them get a foot on the property ladder or just to supplement their own cost of living.
The repayment of debt.
Above all, debt remains a real issue for some retired people. A growing number of people nearing retirement are relying on equity release to clear credit card debt, unsecured loans, as well as paying off their mortgage. This is likely to increase with a whole raft of people who were encouraged to take out interest-only mortgages but now, no longer have the means to repay the capital. Many are now coming to the end of their mortgage term. Equity release may be the answer.
How Anstee & Co can help you with equity release.
We are a firm Independent Financial Advisers. (IFA’s). This means that the financial planning advice we offer is unbiased. As a result, we look at all the financial options that are available to you, not just equity release. Our financial advisers review the whole of the market and do not work from a limited, restricted panel of providers.
- Stamford, Lincolnshire
- Kettering, Northamptonshire
- London, Pall Mall
- Birmingham, Snow Hill Queensway
Additionally, our financial advisers live and make use of meeting rooms in:
- Bedford, Bedfordshire
- Droitwich Spa, Worcestershire
- Towcester, Northampton and Wellingborough, Northamptonshire
Finally, if you would like to find out more about equity release then why not contact us today to arrange an appointment. The initial meeting is free and without obligation.
Anstee & Co are members of the Equity Release Council.
These products are lifetime mortgages or home reversion plans. Equity released from your home will be secured against it.