The Council published its Q3 2024 market data recently, which showed two successive quarters of growth. Read how some of the industry’s experts reacted below.
Ben Waugh, MD of more2life said: “It’s really positive to see the second straight quarter of growth for both the total plans agreed and the total lending in the report for Q3 2024 from the Equity Release Council. The sector has been through a challenging time, so it’s encouraging to see these products once again playing a fuller role for later life borrowers.
“One of the key drivers in this increased activity in my opinion is the level of product innovation. There is much more creativity in the product design from providers, incorporating features like offering a reduced interest rate in exchange for committing to making payments for a fixed term. There is a greater variety in the early repayment charges too, making the transition from mainstream mortgages to specialist later life products more attractive.
“However, there remains huge untapped potential. The number of borrowers for whom these products are a useful option is only going to grow, so it’s crucial that greater numbers of mainstream mortgage brokers add later life products to their service range. Clients enjoy access to products that meet their needs, while advisers not only meet their Consumer Duty requirements but are also properly remunerated for their work. Ultimately everyone benefits.”
Lorna Shah, managing director of Legal & General Retail Retirement: “The latest data points to a stronger later life market with growth over two successive quarters for the first time in two years.
“The motivation to draw on property wealth is driven by a variety of factors and is constantly evolving. Legal & General data over the last year revealed a decrease in the number of customers using their property wealth to cover living costs and emergency funds, with a growing trend of people using their property wealth to pay off mortgages or other forms of debt, for instance.”
- The views of contributors are not necessarily shared by the Council
