Financial advisers report renewed interest in equity release
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Equity release enquiries are reportedly on the rise, with brokers predicting an increase in demand if interest rates are cut later this year. There are also reports of a shift in the product choices being made – with a new profile of customers choosing to unlock cash from their homes.
According to a recent article by Market Strategy, many advisers are reporting an increase in the number of equity release enquiries they are receiving. The MD of one advice firm was quoted as saying: “We’ve had more enquiries in the past three months than in the past year.”
Meanwhile, Equity Release Council chair David Burrowes recently said: “As we look to the rest of 2024, we are confident that the green shoots that we are starting to see will germinate and the market will return to growth.”
The positive news for the industry comes despite the Bank of England deciding to hold interest rates at 5.25% in May, the highest it has been for 16 years. However, inflation has been falling since March and cuts to the Bank Rate rate are expected later this year, which would likely filter through to lower interest rates on equity release plans.