Searching for the source

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Peter Welch takes a look at the issues currently affecting the equity release market to see if he can identify the source of recent turmoil.

Looking at the provider market for equity release products at present one might be forgiven for wondering, where did all the players go? It is certainly true to say that a significant number of lifetime mortgage providers have fled the equity release nest, with Prudential’s departure leaving a sizeable hole. So, why should this have happened? Well, before the credit crunch providers found the equity release market strategically attractive for all the following reasons: The UK is fundamentally a nation of ‘homeowners’ and there is an estimated £250 billion of available equity in reti...

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