Growth predicted For Equity Release Loans March 7th, 2013
The equity release loan market in the UK has seen significant amounts of growth over recent years, as more and more people use the value locked up in their home to help to fund their retirement, pay off existing loan debts, or help their children and grandchildren with a home owner loan deposit.
The Equity Release Council (ERC), the trade body for the equity release loan industry, has predicted that this year will see even more growth in the market, largely due to new and innovative equity release loan products, as well as increased consumer awareness of equity release loans.
Around 45 per cent of ERC members believe that new loan products will make equity release more attractive to home owners throughout this year and 38 per cent think that increased consumer awareness and understanding of equity release loan products will encourage more people to take out such a loan.
This is the first such survey conducted by the Equity Release Council since it was launched last summer. Previously it was known as SHIP (Safe Home Income Plans), but since that time, the membership has been expanded to include Solicitors, Financial Advisers, charity organisations and surveyors, as well as loan providers.
Nigel Waterson of the Equity Release Council said “As more people approach their later years with a question mark hanging over their finances, equity release loans offer many a common sense and practical alternative to selling their homes or falling back on state support.”
“The safeguards supported by the Council’s code of conduct and the work of our standards board are designed to protect consumers’ best interests and mean that over 55’s in 2013 can engage advisers with confidence to discuss how equity release loans can benefit their retirement.”