New research conducted on behalf of Prudential has revealed customer confidence in lifetime mortgages has increased over the past two years.
The survey carried out by YouGov, shows 44% of homeowners over the age of 55 would consider a lifetime mortgage now, compared to just 18% in 2004 and 9% in 2003.
Regulation of lifetime mortgages seems to be an important factor for many people, with 31% of respondents stating it made them more likely to consider an equity release product.
The research also suggests that for many people home equity would be an important part of their retirement provision. It reveals 47% of the population are planning to use their home equity to finance their retirement, with 16% believing it will form the biggest part of their pension fund. Meanwhile, 12% of respondents think home equity will make up more than half of their retirement income.
Dean Mirfin, business development manager at Key Retirement Solutions, agrees saying: “Demand is certainly stronger than ever as we have seen an increase in enquiries and interest in the equity release market as a whole has shown no sign of waning. The challenge for the industry at the moment is in servicing this rise in demand, as not all IFAs and brokers work in this area, so clients are limited in where they can go for information. This could start stifling demand if people can see no clear place for advice, and it may end up bottlenecking the market.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected].IFAonline
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