One source told Mortgage Introducer that the lender had taken its initial plans to a number of brokers to test the water.
The source said: “Abbey did some research among 1,000 people regarding the equity release market. It came up with some ideas and has been pitching them to brokers. What it was putting forward was too rigid though, so we shall see what happens.”
This would not be the first time that the lender has dabbled in the equity release market, having previously joined Safe Home Income Plans and undertaken a lifetime mortgages pilot in the Midlands.
These moves were not pursued through to market entry but Abbey does have a toe in the equity release market through Stonehaven, although this is only a funding arrangement.
An Abbey spokesman said that undertaking research was a natural part of business but failed to rule out any launch. “Naturally we are always interested in the views of the marketplace and regularly ask both consumers and brokers about a range of issues relating to the market.”
Duncan Young, chief executive of Retirement Plus, said he would like to see a player like Abbey in the marketplace.
This sentiment was echoed by Simon Chalk, mortgage planner at Mortgage Portfolio Services, although he insisted that it must not rely on its brand name alone to sell products.
He said: “There are not a lot of household names in the equity release market and those that are in there are under sub-brands which the public aren’t familiar with, such as Mortgage Express. But with Abbey, you have one of the strongest brands so this will enhance the public’s perception of the market and push other lenders to offer better products.
“However, if Abbey does come in then it has got to have something pretty good to offer. There are some good sub-6 per cent rates out there now, so it needs to be innovative and competitive and not just rely on the Abbey brand.”
