Equity release lending will break the £4bn barrier this year if growth continues on its current trajectory, Key Retirement’s Dean Mirfin (pictured) has predicted.
This morning’s Equity Release Council stats showed that homeowners released £870m from their homes in Q1 2018, a 20% increase from the £697m released in Q1 2017.
Mirfin, who is chief product officer at Key Retirement, said: “These figures – together with the trends that we are noticing internally at Key – suggest that while 2017 was a good year for equity release, 2018 has the potential to be an excellent one.
“I would not be surprised to see the amount released reach as much as £4bn by the end of the year.”
Equity release lending reached £3.06bn over the course of 2017.
Alice Watson, head of product and marketing at Retirement Advantage Equity Release, said: “The industry must make sure that product innovation does not let up if growth is to continue. For this to happen, listening to the changing needs of customers is vital.
“Financial advisers also have a critical role to play in helping clients find the right products to suit their circumstances and to help them achieve their retirement aims.”