With the government’s commitment to keeping the economy moving during the pandemic, most financial services have remained open for business. And for the likes of equity release products, the lockdown has brought a new surge of popularity, particularly amongst those looking to unlock lump sums from their properties.
Data published recently in the Financial Times showed a notable change in the demographics and needs of those accessing equity release products during the pandemic era.
For instance, there was a 5% rise in demand for lump sum equity release plans, rather than instalment-based products, since the first lockdown began. Whether this is a reflection of people simply wanting to secure their finances during uncertain times, or a general shift in the market, only time will tell.
The article also reported that demand for equity release products grew on the younger end of the scale, with those in the 55-59 age range increasingly opting for lifetime mortgages.
Around 1-in-5 people reported they were releasing equity to gift their children, alongside a small but growing number of people stating plans to use the money to settle credit commitments. This suggests lump-sum equity release products are likely to remain a popular option for many as we face the financial challenges of the coming years.
Equity release is becoming more popular, but can it work for you?
As ethical, independent and transparent financial advisors, we will always look at your particular circumstances, needs, and financial goals before recommending an equity release plan to you.
Before you commit to a product, it’s important to consider all your other options first. For example, you might wish to downsize your property, or look at ways to access any pensions or other funds you have.
Whether you want to gift money to your children, upgrade your property, or simply enjoy more financial freedom while you are still young at heart, we will be there to support you through the decision-making process. And at every point we will ensure you fully understand the risks and benefits involved.
If you’re comfortable that equity release is the best approach for your needs, we will then assess the whole market, and ensure we find you the best available plan.
A note on our services during lockdown:
With one eye on social distancing, and a desire to keep all our clients safe, we are currently offering telephone and remote consultations while restrictions are in place. Although in time, when guidelines allow, our in-person services will resume, and we look forwards to putting the kettle back on and sitting down with you face to face.
Considering equity release options? Then contact us today.