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Equity release plans treble in a year
The number of equity release products has nearly trebled in the past year providing record high choice for consumers, analysis has found.
There were 1,557 plans available at the end of the first quarter of last year, from 547 in the same period of 2021, according to Key Partnerships.
As well as an increase in plans, the referral arm of Key Later Life Finance said there has been increased innovation across the market over the past 12 months.
All equity release customers can now make penalty-free partial repayments following the stipulation by the Equity Release Council earlier this year.
Last year, roughly 60 per cent of customers could partially repay loans without being charged.
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Fixed early repayment charges, which make it easier and more affordable for customers to switch loan, are currently a feature on around 979 plans or just over 60 per cent of the market, according to Key Partnerships.
Other plans also include downsizing protection, lending on sheltered properties and allow interest payments.
Jason Ruse, business development director at Key Group said: “The expansion of the number of plans available on the market has been remarkable with the last year seeing the number nearly treble.
“Developments in the market and the innovation in product design reflect the growth in lending and the demand from customers for more flexibility underlining how equity release has become a true later life lending market.
“The rapid widening of choice emphasises the importance of expert independent advice for customers and the need for advisers to stay up to date with what is a growing and fast-changing market. Advisers who do not regularly work in the market should consider whether setting up a referral relationship might not be a better idea.”