The company believes that drawdown mortgages, which have soared in popularity in the past two years, are an attractive option for many equity release customers as a result of the flexibility they offer over a client’s lifetime. In addition, fewer people are wishing to draw the maximum funds initially and are guaranteed their cash facility regardless of falling house prices. As a result, drawdown is helping to ensure that equity release withstands the buffeting of the credit crunch and current housing market slowdown.
Jon King, managing director of Hodge Equity Release, commented: “Hodge Equity Release is positive about the future of the market. The flexible options now available have seen the popularity of drawdown mortgages increase, and as equity release customers do not have to move home, any slowdown in the housing market does not impact on the decision to take out these and traditional equity release plans. As a result, Hodge is confident that the future remains bright for equity release and encourages intermediaries to enter the market.”
