The council noted that the market had continued to grow helped by a drop in rates and multiplication of products.
The number of product options jumped to 287 in August 2019, a sharp rise on 126 in August 2018, according to data supplied by Key.
Products that saw the strongest hikes in option numbers were interest serviced, which jumped to 81 up from 22 options, downsizing repayment, up to 129 from 63 and sheltered/age restricted accommodation, whose option numbers grew to 155, up from 42.
At the same time, average interest rates on equity release products fell to 4.91 per cent as of July 2019, down from 5.22 per cent in the same month of 2018 and from 5.96 per cent in July 2016, data from Moneyfacts showed.
The Equity Release Council Market Report Autumn 2019 showed that the UK’s population of those age 55 and above was 20.5 million, of which 1.6 million were age 85 and over. Of those age 65 or above, about 63 per cent own their own home outright.
Innovation and flexibility improving
“Increased product innovation and flexibility is helping to meet a range of financial and social needs, whether providing retirement income or passing wealth to younger generations,” said David Burrowes, chairman of Equity Release Council (pictured).
“The broader range of equity release products can play an important part of an adviser’s toolkit when they are considering clients’ later life requirements.
“It’s vital that advisers across areas including pensions and wealth management are able to identify where equity release may or may not be suitable and to refer the client for specialist advice,” Burrowes added.
Will Hale, chief executive at Key, said: “Equity release rates have fallen steadily with more than half of plans now sold boasting rates below five per cent and some low loan to value options at well below three per cent — all fixed for the product term.
“With more choice, it’s more important than ever for customers to speak to a specialist adviser who knows the later life lending market inside out,” Hale added.
Stuart Wilson, corporate marketing director at More 2 Life, added: “Borrowers now have a vast range of options at their fingertips to help support their later life financial planning.
“Products that offer modern lending features such as inheritance guarantee are experiencing annual growth of 88 per cent and drawdown options 87 per cent.”
