The Council published its Q2 2024 market data recently. Whilst the sector has faced challenges, the market is gaining momentum and showing resilience. Read how some of the industry’s experts reacted below.
Richard Pike, chief sales and marketing officer at Phoebus, said “2024 is undoubtedly another tough year for the equity release sector. However, the increase in lending of some 15% in Q2 compared to Q1 shows that the market is holding its own and hopefully showing further signs of recovery.
“Market feedback indicates that borrowers are taking more drawdown products rather than a lump sum option.
“This in itself could be seen as borrowers still being slightly risk adverse, even while this is a really viable product area that supports funding requirements for people over the age of 55.
“As a whole, advisers are doing a really good job and working in a very reputable manner. This is reflected in the fact that out of 82 complaints to the Financial Ombudsman in Q1, none on the face of it were about mis-selling.
“Assuming the new UK Government doesn’t de-rail the economic progress made so far this year, interest rates should move down in the second half of the year, making products more attractive to borrowers.
Lorna Shah, managing director, Legal & General Retail Retirement added: “Today’s figures, on both the number of new customers and existing drawdown customers, show the equity release market’s resilience, and the success of continued product innovation.”
“As one of the first lenders to introduce drawdowns across our range, it is great to see customers making use of the extra flexibility to release their equity in stages to support a variety of needs.”
“Our own data from the first half of this year showed an increase in new customers using equity release to repay existing mortgages and we expect options like lifetime mortgages to move more into the mainstream as advisers support homeowners to take a more holistic approach towards their later life finances.”
“On this basis, the market should achieve further steady growth in 2024, and 2025 could be a really positive and pivotal year for later life lending.”
- The views of contributors are not necessarily shared by the Council
