“We welcome the FCA’s commitment to meeting the financial needs of an ageing population. Greater choice and competition is a key part of this and recent moves from lenders to review their criteria and consider new products is a sign of progress being made, but there remains a way to go.

“The FCA acknowledges when tackling the challenge of lending in later life and supporting finances for an ageing population, that this is a generation who are typically asset-rich and cash-poor. Following decades of house price growth, for many their home is their greatest asset. Savers have also been hit by the current environment of monumentally low saving returns.

“Housing wealth therefore, has a crucial role to play for funding later life since inadequate savings and pension provision can leave older people feeling cash-strapped. Equity release has the ability to boost your day-to-day income and improve your quality of life, or cover a one-off expense, proving invaluable to many people.  The popularity of this option is clearly highlighted by data from the second quarter of 2016 when we saw unparalleled demand for lifetime mortgages, with lending exceeding £0.5bn for the first time in a single quarter, a momentum we expect to continue.

“As retirement lasts longer, changing and varied needs will call for comprehensive advice and flexible solutions, particular when addressing how to pay for care. We therefore look forward to further collaboration between the residential and lifetime mortgage markets to meet these demands, and to work closely with the regulator as it explores the options open to people nearing, and in, retirement to ensure plenty of choice for a more comfortable later life.”

 – ENDS –

For further information, please contact:

• Andy Lane, Jordan Campbell or Will Muir at Instinctif Partners, on 020 7457 2020 or email [email protected]

About the Equity Release Council – www.equityreleasecouncil.com 

The Equity Release Council is the industry body for the equity release sector, which represents over 400 members including providers, qualified financial advisers, solicitors, surveyors and other industry professionals.

It works to ensure a safe equity release market for consumers, by operating rigorous Standards for the provision of advice and products which guarantee security of tenure and financial protections. 2016 marks the 25th anniversary since the first industry Standards were created for equity release in 1991. Since then, over 350,000 consumers have taken out an equity release plan from Council members, drawing on almost £17bn of housing wealth.

The Council also works with consumers, industry and policy makers to improve awareness and understanding of equity release and the potential for housing wealth to help solve many of the financial challenges facing people over the age of 55 across the UK.