Lifetime Mortgage Market ‘a Growth Area’
Leading lifetime mortgage providers, Aviva, LV= and Just Retirement have reaffirmed their commitment to the equity release market. The three leading providers of lifetime mortgage plans were joined by a selection of other specialists this week when talking about the potential of the market.
This follows the news that Prudential have decided to stop offering lifetime mortgages at the end of 2009. Age Partnership clients can continue to benefit from preferential terms on Prudential plans until 15th January, although they must have received their no-obligation recommendation before the end of December.
Lifetime Mortgage Market Could Be Ripe With Opportunities
Prudential decided to stop offering lifetime mortgages as they aim to invest the up-front cost of the business in other areas. However, LV=’s head of equity release, Vanessa Owens believes this could be a mistake. In a statement she said: “We’re a little surprised at the Prudential’s move and believe it could turn out to be a missed opportunity for them. We see this market as a growth area and LV= is still committed to offering equity release, as part of a range of flexible retirement solutions propositions.”
Many existing providers of lifetime mortgages appear optimistic about the prospects of the market in the coming years. In a statement issued by Just Retirement they said: “Just Retirement remains fully committed to this market.”
British Expats Consider Lifetime Mortgages
Some providers are encouraged by the growth in awareness towards lifetime mortgages and believe this could lead to more companies joining the market. Dan Baines, Sales & Marketing Director of Age Partnership said: “This market could now represent a major opportunity for any company who wishes to expand its operations within the at- and post-retirement sector.”
The net of opportunity for lifetime mortgages appears to be growing amongst a younger demographic. Figures from Alliance & Leicester International this week showed 12% of Britons currently living abroad plan to retire in the UK and of those 2% earmarked equity release as a means to fund their retirement.
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