Equity Release Loan Providers To Increase
Several new providers are set to enter the equity release loan and lifestyle mortgage market throughout the course of this year, as more and more retired people are turning to equity release loans in order to bridge the gap between their pension income and the amount of money they require to maintain their lifestyle.
Several equity release loan providers who had previously withdrawn from the loan market following the credit crunch are now looking to return to the market and offer these specialist loans once again, as consumer demand increases.
Partnership has already announced that it will be returning to the market, probably next month and other providers such as Retirement Plus and New Life Mortgages have plans to re- launch their equity release loan products later this year.
Meanwhile, Just Retirement has announced that it is to increase the level of maximum loan it offers on its equity release loan product, from the current level of £250,000 up to £600,000, due to demand from new customers who require larger loan amounts.
One spokesman for the equity release loan industry said “The equity release loan sector has turned a corner. Awareness in the sector has increased, reputation has improved and providers are more concerned about providing a service rather than just selling a product.”
“We currently have three big companies who hold the lion’s share of the market, so there is definitely scope there for more lenders to enter the market.”
Equity release loans may be used for any legal purpose and whilst many retired individuals are using them to fund their retirement and pay off their own existing loan debts, there has also been a large increase in the number of people using these loans to help family members with their own loans and to provide deposits for house purchase.
