The new guide has a Plain English crystal mark, and aims to explain clearly how the various different types of equity release schemes work.
At present, equity release accounts for only around £1 billion of outstanding mortgage lending. But even the most conservative estimates put the potential size of the market at around £50 billion, with more realistic estimates suggesting the figure could total £100 billion. This means that equity release has enormous growth potential. However, both lenders and consumers regard the market with some caution, and the CML's new guide should help build a solid foundation of understanding for consumers.
Lenders are being encouraged to stock the leaflet and provide it to people considering the option of equity release. The leaflet describes different ways of releasing equity, and suggests questions that consumers should consider. It also answers an extensive list of frequently-asked questions.
