Equity release expected to rise 5% in next 3 months

04 February 2009 / by Rachel Mason

Three quarters of IFAs expect equity release plans to surge in popularity over the next three months.

According to the latest IFA Confidence Index from Hodge Lifetime, 73 per cent of IFAs expect interest in equity release to increase by at least five per cent over the next three months.

As well as predicting a rise in interest in equity release, the survey reveals that IFAs expect a boost for completed applications too.

Hodge Lifetime has found that 60 per cent of IFAs expected the number of completed equity release schemes to increase by at least five per cent.

According to Hodge Lifetime's research, the UK's entry into an official recession has not put people off the idea of equity release.

The survey found that 57 per cent of IFAs felt there had been more interest in equity release during the last quarter of 2008 and expectations are for a further surge in 2009.

"In the current environment, with stretched personal savings and inadequate retirement income, it is perhaps unsurprising that people are looking to equity release in order to make the most of the money built up in their homes," explained Jon King, managing director of Hodge Lifetime.

"The findings reflect this consumer thinking with IFAs reporting strong interest over the last three months," he said.

The survey, the third by Hodge Lifetime – the UK's longest established equity release provider – is a quarterly report that looks at the concerns, perceptions and issues expressed by IFAs operating within the equity release sector.

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