Following the Equity Release Council’s report out today, Mark Gregory, Founder and CEO of Equity Release Group comments

01 February 2024

“Last year presented market conditions resulting in an incredibly difficult year and one of the most challenging we’ve probably experienced within the industry so far, with the market down over 50% in total lending.

“Notwithstanding this, there is now vested interest within the market following the rise of a broader set of products and increase in RIO/TIO lending, which brings about higher case values. Plus, with recent innovations in hybrid, diverse and more favourable products, we expect this to also raise the level of overall borrowing across the later life lending industry.

“Furthermore, the 15-year gilt index has been slowly coming down from the highs of 2023, which has enabled lenders to reduce their rates. Coupled with the fact that property values have held their own against expectation, we have now seen lenders begin to increase their LTVs. Hence, we are seeing the green shoots of recovery, with Advisers feeling a renewed sense of confidence following consumer’s appetite for greater lifestyle purchases, as opposed to just debt consolidation mortgage repayments.

“Heading into the midst of Q1, opportunities continue to arise this year, particularly for advice firms looking to enhance their systems and generate greater efficiencies for their business in line with Consumer Duty.

“The work we have put in to our technology and systems throughout 2023, has enabled us to head into 2024 favourably, as we continue to drive forward. We have experienced an uplift in enquiries and applications this month in comparison to January 2023, with applications up 41% and average loan size up 80%. This is reflective of our whole of market advice approach with more RIO & TIO enquiries, plus the rise in Lifetime Mortgage LTVs and the demand for greater flexibility in retirement.

“Whilst the next few months are still going to be tough and present challenges for the industry, we’re heading in the right direction to get back on track.”