Speaking at the Council of Mortgage Lenders’ “Lifetime mortgages - how can you treat customers fairly?” conference at the Mayfair Conference Centre, London, keynote speaker Ed Wells, a Troika consultant, said: “The equity release market has risen so drastically this year due to a convergence of factors providing the platform for growth – the “Perfect Storm” of equity release, if you like.
“The economic fundamentals are just right: the housing market looks relatively stable, equities are still fully valued on a historic basis and the demographics of the population means that this product is becoming relevant to more and more people.”
“Consumers are more receptive to ER – it’s a key part of people’s In ietirement planning – and “Skiing” (spending the kid’s inheritance) is now acceptable. I think the blue-chip names entering the market are also giving people more confidence. We’re seeing much more brand presence in the market from the major providers – Norwich Union is currently running prime-time TV ads promoting their equity release product.”
“Finally, the pensions crisis, which the government is currently considering, is not going to go away in the short term. Retiring individuals can access capital through their largest asset – the house – much more than they have done in previous generations. These ‘asset-rich, income-poor’ pensioners are turning to their biggest investment as one method of boosting their retirement lifestyles.”
