Comment from Will Hale, CEO at Key, on the Equity Release Council Autumn Market Report
Will Hale, CEO at Key, the UK’s leading equity release adviser said: “While the pandemic has been a source of real financial concern for many, it has seen others reduce outgoings and use this spare cash to increase mortgage capital repayments and put themselves in a stronger financial position.
“However, while the Equity Release Council’s Autumn Report highlights the growth in property wealth and the relative strength of the housing market, we know from the recently released UK Finance statistics that many borrowers will still owe money past their 65th birthday.
“Helping people to manage this borrowing and use the £4.87 trillion in private property wealth to meet the challenges of retirement is what is driving product innovation in the later life lending market. Therefore, it is good to see growth in the range of flexible features available across different lenders and products. We know that there is appetite from customers to mitigate the impact of interest roll-up through the use of interest-served and/or ad hoc capital repayment options and other customers value the added reassurance of being able to leave a guaranteed inheritance or benefit from downsizing protection.
“We see customers increasingly using equity release plans to access their property wealth so they can continue to live in their home and give money to family members as a pre-inheritance. In the first half of the year nearly a quarter of all money released was given to family as gifts with an average value of £72,520.
“Equity release is truly a multi-use product and, rather than being regarded as a ‘last resort’, is now part of the mainstream retirement landscape and is being used by a broader universe of advisers to support a wide range of different customers achieve their wants and needs in later life.”
