Equity release market ‘is taking off’

The equity release market is becoming increasingly popular, according to Keith Haggart, director of retirement needs for Just Retirement.

Speaking to Mortgage Strategy, he explained issues around pension affordability and falling pension incomes are behind the expansion of the sector in the last few years. Mr Haggart pointed out the future of equity release may depend on the government’s reaction to the Dilnot report on social care that was recently published. He said: “There is a lot of uncertainty which makes it difficult to tailor products. If we can get some clarity there are lots of products we can offer to support social care.”

The specialist pointed out a pilot scheme has also been launched with the Joseph Rowntree Foundation in order to test the efficacy of equity release plans. Money raised through such plans can be used to help students through their university degree, pay for the weddings of family members or go towards the cost of a holiday.