A spokesman for Partnership said that it is excited about re-entering the sector and that its move will be “imminent”, with speculation pointing to mid-June. The relaunch will be headed by Ged Hosty, director of equity release at the company.
Partnership is is believed to be working on a proposition with Key Retirement Solution’s provider arm More 2 Life, for its return but the lender was unable to confirm further details.
Meanwhile, Retirement Plus is set to re-enter the sector soon too. A spokesman for Retirement Plus confirmed that it is moving towards re-entry, with no timeline confirmed as yet.
New Life Mortgages has also confirmed that it will launch home reversion products this year.
Jo Wilson, BDM at New Life, said: “We will be entering the home reversion market, but we are still at the discussion stage.”
Stephen Lowe, external affairs director at broker Just Retirement, said the re-emergence of lenders in the market will gradually help boost the sector this year.
“The fact that we are seeing more lenders looking to re-enter, indicates that the sector is beginning to look more attractive to them. This can only be a good thing for the sector as a whole.”
Simon Chalk, equity release planner at LaterLiving, said: “The equity release sector has turned a corner. Awareness in the sector has increased, reputation has improved and providers are more concerned about providing a service than just selling a product.”
He added that he expects one or two more annuity backed providers to enter the market between now and the end of 2012.
“We currently have three big companies who hold the lion’s share of the market, so there is definately scope there for more lenders to enter the market.
“I wouldn’t be surprised if a big provider made a move into the market next.”
