ARCHIVED ARTICLE This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Advertisement

Image of Mike Brown

Michael Brown

Acting Editor
Published: 31/01/2023
wooden cut outs of elderly couple beside a white piggy bank

News contents

Total lending through equity release last year increased by almost 30% compared to 2021.  

The equity release market has doubled in size over the past five years, according to the Equity Release Council, the industry’s official trade body. Last year annual lending reached £6.2 billion compared to the £3.06 billion reached in 2017.

This is partly due to “increased product flexibility and choice”, according to Will Hale, CEO at Key Later Life Finance, an equity release provider.

He listed the no-negative equity guarantee as an example of how such products have become more flexible over the past five years.

The no-negative equity guarantee is a feature which ensures that borrowers will never owe more than what the property is worth when it is sold. If an equity release product is to meet the Equity Release Council’s Product Standards, this must be included.

Meanwhile, the amount lent through equity release last year was particularly high. Compared to 2021, total lending was up by nearly 30%.  

This is despite a quiet month in December, which was due to “factors outside the industry’s control”, according to David Burrowes, Chairman of the Equity Release Council.

In particular, he referred to September’s mini-Budget which fuelled rate rises in the sector.

Seasonal Banner Seasonal Banner

Is equity release the right option for me?

“Equity release is not suitable in all situations,” Hale noted.

It is a line which was echoed by Burrowes, who encouraged potential borrowers to seek independent, professional advice.

Our preferred equity release advisers are Mortgage Advice Bureau Later Life.

Moneyfactscompare.co.uk readers who choose Mortgage Advice Bureau Later Life as their equity release brokers can expect a personalised, full fact-find of their finances to understand their situation.

Once completed, the review will explore alternatives to equity release to see if these might better meet the needs of the customer. If equity release is suitable, Mortgage Advice Bureau Later Life will make applicable recommendations to its customer.  

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.