Equity release mortgages Wednesday, 15th April 2009

Recession could boost appetite for equity release.The equity release sector could potentially gain from the recession as income from savings is squeezed by
unprecedented low interest rates and the slump in the availability of mainstream lending.
Norwich Union predicts that current market conditionsare ripe for the equity release market to double from lastyear’s levels over the next five years. In 2007 retirees
released £1.2bn through equity release and NorwichUnion thinks the market will hit £2.4bn by 2013.
Tristam Carson Head of Intermediary Sales for AgePartnership commented, “The key drivers for growth in the equity release market are already in place and beginning to have an impact on clients and businesses like. The reality of clients in the 55+ egment nowfeeling the pinch of reduced ncome from their pension,coupled with increased energy costs is meaning there is a greater need than ever for good quality equity releasea advice.
A poll by Hodge Equity Release found 73 per cent of IFA’s expect to see interest from consumers within their equity release business increase by at least 5% in the nextthree months and 60% predict at least a 5% increase in completed applications.Despite Britain's entry into an official recession, Hodge found 57% of IFA’s feltthere had been more interest in equity
release among consumers during the last three months of 2008 than during the initialhalf of last year.Tim Loy, Chief Executive of Leeds-IFA Age Partnership,commented “There was a lot more interest in equity releasebut a lot of the conversations that werebeing had at this stage were tentative, early enquiries.”