The Equity release industry is gaining a lot of traction recently, equity release is the process of releasing equity from a property in exchange for a set amount of money from a lender. Lifetime Mortgage advice is the most common type of equity release advice however there are also Home Reversion Plans. Equity Release has had a bad reputation years ago due to high interest rates and the possibility of negative equity.
Nowadays Equity Release products are governed by the Equity Release Council meaning that you can take out equity release and you will never owe more than the value of your house. With lower equity release interest rates and new big lenders entering the market such as Nationwide this has created and fuelled a lot more interest and demand for equity release products and with house prices having steadily increased then it has made a lot of people asset rich, meaning that lots of people have a lot of equity tied up in their properties that they can access if they wish.
However in 2018 for the equity release market there is still a long way to go to improve the image and getting good quality advice out to clients that need it. Currently the amount of Equity Release qualified advisers is far too low to fulfil demand, according to pure retirement there are currently 9000 qualified equity release advisers in the UK but they estimate that only 500 to 1000 of these are advising on equity release on a monthly basis, which shows there is a lot more to do to bring good quality equity release advice to the market.
So how does this get solved, in essence there is no simple answer however bringing new and more flexible products to market alongside well known brands like Aviva, Nationwide and Legal and General all offering equity release products then this certainly helps. Further to this, spreading knowledge about equity release companies and the different types of products they offer will also be useful, there is now varying options to have a lump sum equity release or a drawdown lifetime mortgage.
Martin Lewis explains in the video below that Equity Release isn’t for everyone, as the first option to explore should be the option of possibly downsizing to a smaller house to release equity, however because it is likely that clients have been living in their homes for many years then this sometimes isn’t attractive but if you would like Lifetime mortgage advice to discuss your options then please contact us.
So if you are looking for equity release advice to discuss your options then please contact Steve Embrey on 01743 282222 or email firstname.lastname@example.org