View more on these topics

Equity release market continues to boom

Pensions-savings-retirement-piggy bank

Equity release lending surged 17 per cent in the first six months of 2015, new research suggests.

Figures from equity release provider Key Retirement show retired homeowners cashed in £753m from their properties during the period, up from £641m in the first half of 2014.

The total number of equity release plans sold also increased year-on-year, from 10,013 to 11,007.

Mortgage debt, including interest-only loans, is emerging as a “major issue”, Key Retirement warns, with 23 per cent of customers using equity release to pay off home loans. This compares to 20 per cent in the first six months of 2014.

Almost two-thirds (63 per cent) of sales were drawdown plans, while the remaining 37 per cent involved single lump sum payments.

Key Retirement technical director Dean Mirfin says Government plans to hack away at pension tax breaks could further boost the market.

He says: Property wealth is making a massive contribution to retirement planning and the equity release market is growing rapidly in response with double-digit growth.

“Cuts in pension allowances and contribution levels plus the review of pension tax treatment underlines that property investments are major assets which should be considered as part of anyone’s retirement planning.”


Pensions-savings-retirement-piggy bank

MM leader: Pension freedoms are failing consumers

Since the rollout of pension freedoms in April, there has been a watching brief on whether the reforms have been a success or not. There has been anecdotal evidence of the types of queries providers and advisers are seeing, and how consumers are reacting to this new found access to their pension pots. What has […]


Origen faces FCA pension transfer review

Aegon-owned national advice firm Origen has set aside £200,000 to cover the costs of an FCA skilled persons review into pension transfers. Earlier this month, Money Marketing revealed Origen had been forced to stop writing enhanced transfer value business – where members are offered a transfer value in exchange for giving up their guaranteed benefits […]


Neil Liversidge: Time to tackle the cost of regulation

Nic Cicutti recently argued against fines being used to reduce regulatory costs to firms. Such was formerly the case under wicked old Labour. Fortunately that nice Mr Osborne righted that particular wrong. How blessed we are to have a Chancellor from a party that understands business. Since then the Government has pretty much grabbed the […]


Is BoE paving the way for buy-to-let intervention?

Bank of England warnings on the dangers of the booming buy-to-let market could be the precursor to a wave of interventions in the sector. The Bank warned last week in its bi-annual financial stability report that the size of the market poses risks to the UK economy’s stability. According to Bank statistics, buy-to-let lending accounts […]

Where next for the price of oil?

Having stabilised at around $65 a barrel, many investors are questioning if the price of oil will rise, and when. Richard Hulf provides his view. Richard Hulf, manager of the Artemis Global Energy Fund, sets out his thoughts about how the oil price may move through the next six months. At the start of the […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment