{"id":4449,"date":"2024-06-18T12:07:43","date_gmt":"2024-06-18T11:07:43","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=4449"},"modified":"2024-06-18T13:52:31","modified_gmt":"2024-06-18T12:52:31","slug":"equity-release-trends","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2024\/06\/18\/equity-release-trends\/","title":{"rendered":"Equity release trends"},"content":{"rendered":"<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Statistics from the Equity Release Council highlight the trends seen in the market last year.<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Less lending<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>According to the report<sup>1<\/sup>, annual lending totalled \u00a32.6bn in 2023 \u2013 significantly lower than the record-breaking \u00a36.2bn seen in 2022. This returned the equity release market to a level of activity that was last seen between 2016-2017 (\u00a32.1bn to \u00a33.1bn).&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Fewer new customers<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The decline in lending is partly due to a drop in the number of new equity release customers. In 2023, the number of new plans agreed decreased by 47% year-on-year to 26,119. Those that did enter the market were also borrowing less \u2013 the average new lump sum customer reduced their loan size by 26%, making last year the first time since 2019 that this kind of borrowing was below \u00a3100,000.&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Preferences changing<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>In 2022, lump sum lifetime mortgages made up 52% of new product sales. This trend was reversed last year, with 53% opting for the flexibility of a drawdown lifetime mortgage.&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Expert opinion<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Chair of the Equity Release Council, David Burrowes, commented<em>, \u201cEvery corner of the mortgage market saw rising interest rates put the brakes on activity in 2023, and equity release was no exception with customers and their advisers taking a cautious approach. This resulted in loan sizes shrinking and fewer people borrowing for more aspirational reasons.\u201d<\/em>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><sup>1<\/sup>ERC, 2024&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Equity Release and Lifetime Mortgages will reduce the value of your estate and can affect your eligibility for means tested benefits.<\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Statistics from the Equity Release Council highlight the trends seen in the market last year.&nbsp; Less lending&nbsp; According to the report1, annual lending totalled \u00a32.6bn in 2023 \u2013 significantly lower than the record-breaking \u00a36.2bn seen in 2022. This returned the equity release market to a level of activity that was last seen between 2016-2017 (\u00a32.1bn [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":4450,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,76],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/4449"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=4449"}],"version-history":[{"count":4,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/4449\/revisions"}],"predecessor-version":[{"id":4454,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/4449\/revisions\/4454"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media\/4450"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=4449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=4449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=4449"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=4449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}