Will Hale, CEO at Key Later Life Finance, said:
“Today’s figures from the Equity Release Council (ERC) reporting £1.53 billion of lending in Q1 not only highlight a record quarter for the industry but also demonstrate the growing significance of the sector for the UK economy and for household finances. Whether money released has been used to boost spending power, manage debt or support family, it has made a real difference to many people which underlines the true strength of the vibrant later life lending market.
“Product flexibility is vital to the sector’s continued development, and it is worth noting that customers saved almost £100 million in future interest costs in 2021 by making penalty-free partial repayments. With the introduction of this flexibility as the fifth ERC standard, customers now have more choice than ever before to find a product which fits with their changing circumstances through later life.
“Property wealth is firmly established as an integral part of retirement planning and will remain important not least because of the cost-of-living pressures which are affecting household bills for all sections of society with inflation at a 30-year high. Advisers have a major role to play in supporting customers and their families in navigating the growing financial pressures.”
