View more on these topics

Equity-release business booms

Equity-release lending shot up by 121 per cent in the first half of this year compared with 2002.

The figures from the Council of Mortgage Lenders, based on returns from 21 lenders active in the equity release market, show that £498m was borrowed by older homeowners in equity-release mortgages – more than double the total of £225m recorded in the first half of 2002.

The CML says around 11,700 equity-release loan were taken out at an average value of £43,000.

The equity-release market still represents less than 0.5 per cent of the total residential mortgage market but the CML believes this is set to change, with industry estimates suggesting a realistic potential market size of £50bn-£100bn.

Director general Michael Coogan says: “Older people are increasingly in a situation where most of their wealth is tied up in their home.

“Equity release can make a lot of sense for some of these owners, especially if they do not want to move or trade down. The key priority is to make sure that these borrowers, some of whom may be vulnerable, truly understand the nature of an equity-release mortgage.”

Mortgage Express head of business development Tim Sturley says: “All the demographics show that this is a growing market. With an ageing population, it is going to be a strong market and we will be entering it in the near future.”


&#39Keep clients up to date on savings endowment performance&#39

Providers and advisers alike need to take responsibility for keeping clients informed of the progress of their savings endowment policies, according to Sofa chairman Nick Bamford. Product providers are required to provide regular illustrations for all pension policies and mortgage-linked endowments but they do not have to do so for savings endowments. Bamford says that […]

HL set for equity release

Hargreaves Lansdown is entering the equity-release market with a team of three specialist advisers and plans to increase the team rapidly. The IFA believes it is the right time to launch into the market, saying the sector is gaining credibility as more lenders launch products. Hargreaves will initially consider products from all lenders but says […]

Aegon set to add to IFA holdings with Tenet stake

Aegon is looking to join Friends Provident and Norwich Union in taking a stake in IFA network The Tenet Group. It is understood that Aegon is in the early stages of negotiations to take around a 10 per cent stake in the group, similar to that of Norwich Union and Friends Provident, which both paid […]

ABI draws up action plan for stakeholder

Eighty-two per cent of the 350,000 employer-sponsored stakeholder pensions are empty boxes and overall long-term saving is down by 17 per cent, says the ABI. Its figures show that just 4,550 or 13 per cent of workplace-based schemes have employer contributions. Since launch in April 2001, 1.5 million stakeholder pensions have been sold. Sales of […]

Mark Page: “A good time to be a European fund manager”

With European markets picking up in early 2015, Mark Page, Artemis European Opportunities Fund manager, discusses the ‘macro’ drivers and whether the improvements are sustainable. Largely driven by economic stimulus by the European Central Bank, European stockmarkets have performed strongly so far in 2015. Mark discusses the relative merits and sustainability of ECB policy with […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm