SAGA and SHIP report increase in equity release business whilst average age increase highlights difficulties faced by pensioners
Saga Equity Release Advice Services has more than doubled its share in the equity release market after announcing year-on-year business growth of 126 per cent for the year to October.
Saga also believe this significant growth is likely to continue as more and more people are considering equity release as an income opportunity. Safe Home Income Plans (SHIP) figures for Q3 revealed equity release had reach its highest level of lending since the start of 2010 after increasing by 12 per cent.
Meanwhile, Goldsmith Williams Solicitors report an increase in the year-on-year average age of Equity release clients up from 69 in 2010 to 71 in 2011, potentially highlighting that those already retired are struggling to cope with increased costs of living and failing pension and savings provision.
Richard Espley, Head of Equity Release at Goldsmith Williams reports:
“Whilst we are seeing clients using equity release for an increasingly wide range of reasons, we have also noticed a particular increase in the number of clients simply struggling to make ends meet. Debt consolidation where the client uses equity release to repay some or all of their debt is becoming more and more popular as it frees up income and removes the worry of monthly credit and mortgage payments.”
In all cases though, a client should first seek professional advice from a specialist financial advisor. Goldsmith Williams only deal with introducers who are experts in this field and can supplement the services of the introducer with specialist legal advice for consumers.
¹Mortgage Solutions (Oct 2011) Click here for more
Content correct at time of publication