ERS reports resurgence in consumer appetite

Jake Carter

October 22, 2020

mortgage search uptick

Equity Release Supermarket (ERS) has reported a resurge of consumer appetite and business growth following a successful Q3.

The data showed that equity release enquiries increased by 31% in comparison to Q2.

Moreover, ERS’ video communications channel has seen increased usage by 3.7% compared to the previous quarter.

According to the firm, lending rose by 45%, new plans issued rose by 42%, and average case values increased by 4% in Q3 compared to Q2.

On a regional basis, case sizes in Scotland recorded an 18% increase, while the North West noted an 8% decline.

As a result of the restrictions on the aviation industry, ERS noted a 400% rise in monies spent on mobile homes or caravans.

Mark Gregory, founder and chief executive of Equity Release Supermarket, said: “We have clearly seen a fundamental change in consumer behaviour and trends, digital activity and the way we do business during the pandemic, which we have responded to with the launch and evolution of our own digital channels.

“However, we are now witnessing a rebound in business particularly as lenders and solicitors are returning to a more ‘normal’ working environment.

“Plus, consumers are equally eager to resume to some kind of normality.”

“Whilst we are seeing slower growth compared to this quarter last year, this is not due to a fall in market interest, in fact that is back on the rise, but simply due to a delay in processes and a period of uncertainty for the country as a whole due to challenges caused by the pandemic.

“We have witnessed a shift in behaviour, usage trends and age-related changes over this period. In Q3, 59% of plans were taken in a lump sum, whereas this percentage was 63% in Q2.

“Drawdowns also decreased from 37% in Q2 to 35% in Q3, again indicating that fewer customers required the maximum release available to them to support themselves and their families, given that less spending opportunities are available.”

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