JLM/ERMA comments on the latest Equity Release Council Quarterly lending figures

18 April 2018

Below are some comments from Rory Joseph, Director of JLM Mortgage Services and equity release advisory firm, Equity Release Mortgage Advice (ERMA), on the latest quarterly Equity Release Council lending figures:

“These figures show the burgeoning need and greater level of access to advice for older homeowners seeking to utilise the value they have in their own homes. We launched our own specific specialist equity release firm, Equity Release Mortgage Advice, at the start of this year and our own experience certainly chimes with the numbers coming out from the Equity Release Council. Our own business volumes for Q1 2018 were up 400% in comparison with the same quarter in 2017, and we’ve certainly seen a significant increase in both understanding and interest in equity release and later life lending products.

“To our mind, this is a market which, along with residential later life lending, is only likely to grow because of underlying societal changes such as greater longevity of life, poorer pension provision, and a need to support the family. One of the big growth areas for us has been the number of people seeking to release equity in order to help their children get on the property ladder, plus there are a large number of existing interest-only mortgage borrowers who have come to the end of their term and need money to pay off the capital part of these loans. We’re also seeing individuals using equity release to pay off other debts, renovate and refurbish their homes, plus covering other retirement costs.

“This is a sector where advice is crucial and it’s important that there is fairness and transparency around fees – we charge a fixed-fee not a percentage of the loan – and our advisers also cover both equity release and later life lending. Not every borrower will be suitable for an equity release product – the same goes for later life loans – and it’s therefore imperative that consumers use advisers who can cover off both areas. Without this, they are setting off down a particular path, and effectively cutting themselves off from one of these sectors – in our mind, advisers must cover both or they are doing their clients a disservice.”