IOM time bomb will lead equity release surge

Robyn Hall

May 2, 2013

The FCA has found that almost 300,000 borrowers with loans maturing before 2020 face a shortfall in repaying their interest-only mortgage.

Of those 300,000 borrowers around 100,000 will have a shortfall of £50,000 or greater.

Simon Chalk, technical manager for equity release at Age Partnership, said: “The equity release sector is well placed to extend a helping hand to the tens of thousands of borrowers, stricken with worry over how and when they can eventually repay their mortgage.

“We now call on banks and building societies to work with us in developing products or channels for signposting their borrowers to appropriately qualified equity release advice.”

Chalk said that he expects many homeowner they will take advantage of equity release to clear any remaining mortgage commitment.

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