Is the Equity Release Market ready to recover?

The equity release market has been in decline since 2008 and now there are signs that it may soon recover. There has been significant press recently about the slight increase in

New data from Safe Home Income Plans (SHIP) suggest that the equity release market could be turning a corner. In the second quarter of 2010, the value of advances slipped to £196.7 million but the decline was smaller than in the previous three month period.

Drawdown equity release proved to be the most popular course, accounting for over 50% of sales, and the typical equity release client unlocked £45,702 from their home, up from £45,251 in the first three months of the year.

This will be good news for millions of pensioners who will be feeling the pinch. Although because the market declined so badly many of the equity release providers withdrew their equity release schemes in 2009/10. These were names such as Prudential, Coventry Building Society and Stonehaven Equity Release to name a few.

Who is eligible for Equity Release

To be eligible for equity release you need to be at least age 55 for a lifetime mortgage and 65 for a home reversion scheme. You also need to own your own qualifying property and have no mortgage or a very small mortgage that needs to be cleared with the equity release.

TO UNDERSTAND THE FEATURES AND RISKS ASK FOR A PERSONALISED ILLUSTRATION. AN EQUTY RELEASE PLAN WILL REDUCE THE VALUE OF YOUR ESTATE, WILL NOT BE SUITABLE FOR EVERYONE AND MAY AFFECT YOUR ENTITLEMENT TO STATE BENEFIT.