Sue Read Later Life Lending Manager
Building Momentum 24
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or many advisers Equity Release has a chequered history but it’s odd to think that the first plan was in 1965 before Pickles discovered the World Cup in a hedge and when houses were typically valued at £4,000.
Since then so much has changed in terms of the growth of equity value, range of life time mortgage products and growth in the market, and of course a commitment to standards and safeguards for consumers established by the Equity Release Council and its predecessor trade body Safe Home Income Plans. We now have a number of customer safeguards including a No-Negative Equity guarantee, a promise of tenure for life and the freedom to move to a suitable property. Of course all potential equity release customers must now have independent legal advice before they
A Forward Thinking Network.
enter into any agreement which provides an additional safeguard. Thanks to product innovation alongside a low interest rate economy we are now seeing borrowing solutions to meet the challenges of an ageing population, demands for intergenerational fairness and ease of access to property wealth. According to the Equity Release Council, older age groups are not just the biggest owners of property; they also depend the most on its contribution to their overall finances. Bricks and mortar accounts for 40p in every ÂŁ1 of household wealth for those aged 65+, rising to 47p among the over-75s versus 35p across the nation. The report suggests these shifting trends are driving a change in attitude among the over-45 homeowner population with this generation facing multiple financial challenges as they seek to live longer, healthier lives while
