Category: Equity release
£698m of property wealth was accessed by older homeowners in Q2 2020, down by 34% (almost £400m) from Q1.
COVID-19 has impacted most industries around the country, and the equity release sector is no different.
Key’s second report into care funding has highlighted a major shift in attitudes to using property wealth to fund care – around a third of over-55s plan to use their homes now compared with just 19% a year ago.
The package will be available for advisers who sign up to join ERA’s specialist equity release network by 30 September 2020.
This demographic is expected to borrow less as a result of the coronavirus crisis, being increasingly cautious amid economic uncertainty.
So far this month, five out of nine lifetime mortgage lenders have cut or launched new rates, but since the start of June, 90 deals have been withdrawn.
more2life will compensate customers if it takes longer than 14 working days to issue a loan offer.
The volume of clients releasing equity for holidays only dipped by 0.8% over the last quarter.
The figure, based on the latest Halifax quarterly regional house price index, reveal that the total amount of housing equity available to homeowners aged over 55 now stands at an estimated £499bn.
Between Q1 2020 (11,495) and Q2 2020 (8,374), the market saw a 27% fall in the number of customers using equity release and a 45% fall in the amount of new equity released (£949m to £521m).