In September 2004, just 12 per cent of people aged over 55 said they would take out a home equity plan but in December, three months after mortgage regulation began, 23 per cent said they would be confident taking out a plan.
Pru predicts that demand for lifetime mortgages will continue to increase and estimates that the lifetime mortgage market could grow to 6.8bn by 2008. It says this is due to a number of factors including trends in house prices, combined with pension uncertainty.
The latest figures from Safe Home Income Plans shows that new business for lifetime mortgages in the third quarter of 2004 was estimated at 338m.
The growing demand for lifetime mortgages has prompted Pru to offer a free guide for consumers which outlines the impact of mortgage regulation, explains the different types of products available and highlights the factors that people need to consider before taking out a lifetime mortgage.
Director of home equity plans Ali Crossley says: “Mortgage regulation has brought with it unprecedented levels of consumer confidence in the lifetime mortgage sector and demand is still growing. This is why we are launching a free guide for consumers. Lifetime mortgages are a big decision. Our guide helps our customers see whether it is right for them.”