A new equity lender is preparing to enter the market in January, targeting a place among the top three lenders.
Pure Retirement has unveiled plans to launch at the start of 2014 and will be the first new provider to move into the equity release sector since More 2 Life's entrance in 2010.
Pure Retirement is a sister brand to Age Partnership, although the two will run separately, and is led by managing director Paul Carter who has more than 16 years' experience in the sector, having previously worked for both Aviva and Prudential.
Carter told Mortgage Solutions the new brand would seek to change the market by simplifying equity release and focus on real consumer needs with its range of products.
"The equity release market is in good shape, but we believe our launch will provide it with renewed vigour," he added.
"We believe our fresh approach to the products will make them better suited to meet the needs of consumers.
"We are proud to be the first new provider in the market for more than three years. Although the process of launching a new company such as Pure Retirement is lengthy and complex, we expect to see more providers follow our lead as the equity release market continues to grow."
Recent figures showed the last three months were the biggest quarter for equity release in five years and Nigel Waterson, chairman of the Equity Release Council, said the new launch would provide a boost to the entire industry.
"The addition of another regulated, expert equity release provider will further strengthen the sector's ability to meet a range of financial needs in retirement. As the market continues to grow we expect to see other lenders follow the lead of Pure Retirement, which will not only improve consumer choice but also encourage a healthy level of competition."
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