{"id":4712,"date":"2024-08-06T11:21:47","date_gmt":"2024-08-06T10:21:47","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=4712"},"modified":"2024-08-06T12:23:47","modified_gmt":"2024-08-06T11:23:47","slug":"equity-release-market-update","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2024\/08\/06\/equity-release-market-update\/","title":{"rendered":"Equity release market update"},"content":{"rendered":"<div class=\"hd-block hd-block-paragraph\">\n<p><strong>After a slow 2023, the equity release market is showing some signs of tentative improvement.<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>In Q1 of this year, the number of new and returning customers using equity release products rose to 14,216 \u2013 4% higher than the previous quarter<sup>1<\/sup>. Existing customers are showing most confidence in the market, as they drove a 6% increase in drawdown activity. Meanwhile, the number of new customers fell by 11% in Q1, suggesting that this group are proceeding with a little more caution.&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Reflecting on the data, Chair of the Equity Release Council, David Burrowes, commented, <em>\u201cNew customers are choosing drawdown plans with smaller initial advances while existing customers are being more modest about their borrowing compared to the start of last year.\u201d<\/em>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Where is the unlocked money going?<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>A lifetime mortgage lender analysed the new equity release plans that were taken out in Q1 and found that one in five of their borrowers owned a property worth over \u00a3550,000<sup>2<\/sup>. When asked how they planned to spend their money, 22% said of customers said they wanted to make home improvements. Meanwhile, nearly 20% hoped to repay debts and mortgages, and 15% were planning to use the unlocked cash on holidays.&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Seek guidance<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>It is essential that you seek professional advice before releasing equity on your home. We can talk you through the advantages and drawbacks.&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>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><sup>1<\/sup>ERC, 2024, <sup>2<\/sup>Pure Retirement, 2024&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong><em>It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.<\/em><\/strong>&nbsp;<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>After a slow 2023, the equity release market is showing some signs of tentative improvement.&nbsp; In Q1 of this year, the number of new and returning customers using equity release products rose to 14,216 \u2013 4% higher than the previous quarter1. Existing customers are showing most confidence in the market, as they drove a 6% [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":4713,"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\/4712"}],"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=4712"}],"version-history":[{"count":7,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/4712\/revisions"}],"predecessor-version":[{"id":4722,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/4712\/revisions\/4722"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media\/4713"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=4712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=4712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=4712"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=4712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}