Equity release in demand

Equity release gives people access to the value they have built up in their home for their own use and is a choice for many looking to maintain or create a better lifestyle or to meet an unexpected financial need.

According to Key Retirement Solutions’ Market Monitor, which tracks activity in the UK equity release market, the demand for equity release plans by Britons shows little sign of slowing down.

In the last 12 months, the demand for equity release plans has increased by nearly 10% compared to 2006, with over 22,600 plans, totalling over £1 billion taken out so far this year.

A spokesperson for Key Retirement Solutions, Dean Mirfin, said that their figures indicate that demand for equity release continues to increase in all areas of the UK, in spite of the instability in the credit markets and interest rate speculation.

Mr Mirfin added that rates for some products have risen so borrowers have been able to take advantage of some very good deals. Conditions in the market remain positive and it is expected that the final quarter of this year will produce strong results.

The research also established that the average age of an equity release customer is falling. Their report issued in July noted that in the 6-months to June 2007, the average age of an equity release client fell from 71 to 70. However, the updated monitor for the 12 months to date shows that the average age has fallen again to 68 years.

Key noted that there could be a number of reasons for this, one being the availability of equity release plans from are from the age of 55.

Mr Mirfin concluded that anyone considering equity release should seek independent and specialist advice.

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