Archive for February, 2009
Retired Homeowners could save £300 million by switching equity release plans
Mail online have reported that UK pensioners with an existing equity release scheme could save up to £300 million collectively by switching to an alternative plan at a lower interest rate.
Financial Services Authority to Regulate Sale and Rent Back Schemes
The Financial Services Authority has announced that it is to regulate Sale and Rent Back Schemes. The news was welcomed by Tim Loy, Chief Executive of equity release advisors Age Partnership who said, “This is good news for consumers and the equity release market. Unregulated Sale and Rent Back Schemes have often been confused with regulated equity release plans and this should create more of a level playing field. Unlike equity release plans, sale and rent back schemes generally do not offer security of tenure to the client and also require rental payments to be made, whereas with equity release there are normally no monthly payments to make”.
Equity Release Debated In House Of Lords
Peers, Consumer organisations, Charities and Equity Release Providers convened at the House of Lords on 28th January 2009 to discuss the future of equity release in retirement planning.
Organisations such the Office of Fair Trading, Financial Services Authority and HM Treasury debated the challenges to achieving a more significant use of safe equity release to help fund retirement.
Equity Release Allows Retired Homeowners To Remain In Their Homes
A recent report by equity release trade body Safe Home Income Plans (SHIP) stated that the cost of moving into a residential care home is five times that of receiving care at home. Whilst the cost of care is soaring, equity release could provide a solution for older homeowners.
Norwich Union Predict Doubling Of Equity Release Market
Norwich Union who recently celebrated their 10th anniversary in the equity release market has predicted that the market will double to £2.4bn of lending over the next five years.
A spokesman for Norwich Union said “Going forward we see the equity release market doubling over the next five years and truly coming into its own as a mainstream retirement planning tool. With big high street names offering these products to their customers, more intermediaries gaining their qualifications and equity release innovations taking into account customers changing needs, the future for this market is bright”
Equity release set to grow in 2009
Independent financial advisors are confident that equity release is set to become more commonplace in 2009, a survey has shown.
With the current economic climate meaning that many mature homeowners are struggling to afford the comfortable retirement that they deserve, it is perhaps not all that surprising that many should now be considering a modern, regulated equity release plan to improve their lifestyle.
