In the survey of over 200 property experts including lenders, brokers and surveyors, Countrywide Surveying Services (CSS) found that 84 per cent of property professionals emphasised the worth of later life lending.
Over half of those asked (54 per cent) said that that the later life lending sector was ‘very important’, with 30 per cent expressing that it was ‘somewhat important’
Only 5 per cent said that the sector was ‘not very important’, with 11% implying that it was ‘neither important nor unimportant’.
When asked about later life product offerings and what equity release could be used for, 40 per cent of respondents indicated home improvements, while 36 per cent said it would supplement income.
Almost a third of respondents said it could be used to clear unsecured debt, and 30 percent noted that it could be used to raise money for legal purposes, for example tax bills, inheritance planning and holidays.
A further 26 per cent cited to repay a mortgage.
Attitudes towards later life lending are changing
Matthew Cumber, the managing director at CSS said: “Given the shifting demographics of the UK population and changing attitudes, the later life sector will continue to provide a prominent route to funds in a way which has subtle differences to a more vanilla lending approach but one that can generate a significant longer-term impact.”
Kelly Melville-Kelly, the director of risk, policy and compliance at the Equity Release Council, added: “These findings show just how vital an active later life market is for older homeowners. Given the average UK homeowner has £222,526 in equity, many will find property is their largest financial asset, able to bridge the gap between their pension savings and the challenges of later life when incomes typically decline”.
“Modern equity release products provide more opportunity and flexibility for older homeowners to free up capital and boost their income without having to leave their homes if they don’t want to.”
“Equity release should be a part of every later life financial planning conversation just as downsizing, other financial products and family support should be”
With later life lending front of mind, tomorrow (31 October at 12.30) Mortgage Solutions will partner with Family Building Society to deliver later life lending masterclass.
