Equity Release market set to stay strong during coronavirus crisis
Even coronavirus can't stop the ever-growing popularity of equity release, which has increased almost four-fold in the last decade, with the annual value unlocked from people’s homes rising from £945.97 million (2009) to £3.92 billion (2019)*.
Over 50s comparison website Over50choices.co.uk surveyed over 2,000 homeowners between 17th March and 20th March 2020 who had previously expressed an interest in equity release – and found that almost half said the coronavirus had not changed their decision to release equity in their home.
Over50choices MD Ashley Shepherd said: “This is incredible considering what’s happening in the world right now – but not wholly unsurprising given the fact that people are looking for ways to supplement their income and help family during the crisis. Equity release can be a great option, so long as you seek advice and fully understand the pros and cons.”
“At such a volatile time for the stock market, pensions, savings and investments will inevitably suffer. However, those looking to unlock tax free cash tied up in their home to help their loved ones could benefit from some of the lowest interest rates ever seen, which is great news as these will be fixed for life,” Ashley said.
Over50choices saw their own equity release business grow 45% in 2019, and were set for another record year in 2020.
Coronavirus has clearly disrupted some people’s financial decision making, though, as one in six said that they will no longer be proceeding with equity release due to outbreak and one in three put their plans on hold until life goes back to normal.
Ends
Survey data
2,151 households who had previously enquired about equity release
Further to your recent equity release enquiry, could you please tell us whether Coronavirus will affect your decision to release money from your home?
48.65% No impact
34.46% Will put on hold and see what happens
16.89% No longer considering as a result of coronavirus
Survey carried out 17th March to 20th March 2020
Notes to editor
Over50choices was established in 2013 specialising in the over 50s market, offering guides, reviews and comparisons for equity release, funeral planning, life and general insurance.
Ashley Shepherd founder and MD at Over50choices, previously the Marketing Director at AXA Wealth & SunLife for 7 years following a 30 year career in financial services..
Contact Ashley on 07977917714 or ashleyshepherd@over50choices.co.uk
* Equity release market statistics from The Equity Release Council