Equity release 'set to go mainstream'

Changing attitudes and an ageing population will see equity release become a major part of the retirement planning sector in the next few years, it has been claimed.

Andrea Rozario, director general of Safe Home Income Plans (Ship), said that interest in equity release as a method of providing for retirement has grown since the onset of the economic downturn.

She claimed that what was previously viewed as a ’marginalised product’ or a ’last resort’ is now moving into the mainstream as low interest rates continue to hit pension savings.

’The growing older population that we have got, with their different attitudes, needs and expectations, is going to impact on equity release,’ Ms Rozario commented.

’It’s only natural that people will think about how they can utilise their biggest asset, which is their bricks and mortar.’

A report published by Key Retirement Solutions earlier this week revealed that the total value of equity release lending increased by 13 per cent in the third quarter of the year.

Ship counts the majority of the equity release market among its members, which include providers of lifetime mortgages and home reversion plans.
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