Halifax is believed to be planning a launch into equity release in the next three to four months.
Money Marketing understands that the UK's biggest lender is likely to move into the rapidly expanding market in the next few months, marking the first time a member of the HBOS group has made a foray into equity release.
Halifax would follow other recent entrants including Standard Life Bank, which launched a product last November, and Mortgage Express, which entered the market last October.
IFAs say they would welcome the entrance into the market of a player such as Halifax as greater competition would benefit advisers and consumers by driving down prices and costs.
Halifax senior press officer Paul Fincham says: “We have a watching brief on equity release at the moment. We are looking at the market but there is no likelihood of us doing anything very soon.”
Hargreaves Lansdown head of mortgages Ian Jordan says: “The entrance of Halifax into the equity-release market would be good for the industry as it would provide more competition and help drive down prices. There are more and more lenders coming into this market and my view is the more the merrier.”