15% rise in Q2 equity release lending "pivotal", says Phoebus

25 July 2024

Richard Pike, chief sales and marketing officer at Phoebus, said: “2024 is undoubtedly another tough year for the equity release sector. However, the increase in lending of some 15% in Q2 compared to Q1 shows that the market is holding its own and hopefully showing further signs of recovery.

“Market feedback indicates that borrowers are taking more drawdown products rather than a lump sum option. This in itself could be seen as borrowers still being slightly risk adverse, even while this is a really viable product area that supports funding requirements for people over the age of 55.

“As a whole, advisers are doing a really good job and working in a very reputable manner. This is reflected in the fact that out of 82 complaints to the Financial Ombudsman in Q1, none on the face of it were about mis-selling.

“Assuming the new UK Government doesn’t de-rail the economic progress made so far this year, interest rates should move down in the second half of the year, making products more attractive to borrowers. On this basis, the market should achieve further steady growth in 2024, and 2025 could be a really positive and pivotal year for later life lending.”