New equity release customers surpass 13,000 for the first time in Q3 2022, an increase of 34% year-on-year. To view the data in full click here or read what some of the industry’s leading experts had to say below.
Craig Brown, CEO of Legal & General Home Finance said: “Demand for equity release has returned to pre-pandemic levels, as the nation looks to the value of their homes to support strategic later life planning needs. Although there may be a slowdown in house price growth, property prices are still at an all-time high and many homeowners have built up a significant amount of equity in their homes and see their home as a retirement asset.”
“Equity release is a lifetime product which, along with Retirement Interest Only Mortgages, allows people to confidently plan for the long-term. For customers coming off interest only mortgages in particular, recent product innovations, such as Legal & General’s Optional Payment Lifetime Mortgage, which allows them to pay some, or all, of the interest each month, can be helpful given upwards pressure on interest rates.
Simon Gray, managing director of Hub Financial Solutions said: “This is another positive quarterly report demonstrating the ongoing recovery from the pandemic disruption. After a busy Q2, it is clear customer demand to access some of the value tied up in property continues to be strong despite the backdrop of rising interest rates.
“The growth in the market reflects the fact that lifetime mortgages are increasingly meeting a whole range of homeowners’ needs, from boosting income, to generating lump sums, paying for care or estate planning. We are optimistic that demand will continue as people realise the potential of the wealth stored in their homes.”
Will Hale, chief executive of Key said: “Today’s figures from the Equity Release Council highlight a growing and robust sector. However, as with other parts of the mortgage market, recent political uncertainty has impacted rates and product availability which means that the final three months of year will likely look quite different to the first three quarters. While the appointment of the new Prime Minister looks set to steady the markets, there remain challenges ahead and customers considering borrowing in or into retirement must seek specialist advice and consider all their options.”
Stephen Lowe, group communications director at Just:
“Total lending has surpassed last year’s record of £4.8 billion with the final quarter – usually the busiest period of the year – still to come. Customer numbers are on course for record levels this year too. These figures highlight the increasing appetite for people to make use of the wealth stored in their homes to meet their lifestyle aspirations whether they are seeking to help their families, generate extra retirement income, or pass on lump sums as part of an inheritance planning strategy.”
Stuart Wilson, CEO of Air said:
“The figures recorded in Q3 2022 were a welcome return to more normal trading conditions following the pandemic, but the impact of the recent political uncertainty combined with the cost-of-living crisis and historic inflation rates were clearly felt by the end of September.
“All residential property markets are currently facing a challenging time but this sector has much in place to support customers from increasingly flexible products to specialist qualified advisers. While rates which hit an average of 4.54% in Q3 are naturally a consideration, advice needs to be far more personalised to ensure clients find the right option for their circumstances.”
Steve Wilkie, executive chairman of Responsible Life said:
“Buoyant property prices continued to give homeowners a ready solution to their financial needs in retirement over the summer, and this is what drove record equity release lending and sent the number of new loans to an all-time high. The rise in the number of new lifetime mortgage borrowers is perhaps most significant. While the total amount borrowed is affected by inflation and property price growth, the numbers of people whose best option in later life is equity release continues to rise.”
