Equity release lending hit its highest quarterly level for six years in October with a figure of £375.5m for Q3 2014, according to the Equity Release Council (ERC). This was up by 15% on the previous quarter.
Meanwhile Santander announced plans to re-enter the lifetime mortgage market next year.
Despite criticisms that this type of product would mean severely reduced inheritance sums being passed down generations, the move was generally welcomed by the industry.
Mortgage Solutions polled brokers to see if they thought the latest figures, combined with Santander’s announcement, would be a turning point for the equity release market.
Just over two-thirds (68%) said yes, 16% said no and 16% said “not yet”.
Geoff Charles, chief executive officer at Bower Retirement Services, said he expects the market to continue to grow in 2015.
“I believe the market will pick up next year, mainly due to new product innovation from both existing lenders and new lenders. I’m hopeful we will see new names like Santander launching equity release products. I’m confident the market will continue to grow.”
