Second charge and equity release best bets for 2019 - Fluent Money
21 January 2019
With 2018 lending figures for second charge mortgage and equity release lending showing significant increases, Tim Wheeldon, Chief Operating Officer believes that brokers should not ignore the two brightest sectors in the market at a time when traditional funding sectors are flat.
He said, “Second charge mortgage origination is now running at over £1 billion per annum. With the current political uncertainty, we are also now seeing plenty of evidence that more homeowners are staying put rather than moving and making home improvements instead, for which second charge loans are well suited. It is a message we need to broadcast very loudly. Second charge borrowing can provide a realistic alternative to remortgaging for clients wanting access to equity to meet their current requests for funds.”
Tim added, “Equity release origination topped £3.65 billion last year and likewise no one can ignore the positive impact that equity release is having on meeting the needs of older customers. Gaining access to equity previously tied up in domestic property is allowing a generation to boost retirement funding, pay off mortgages and fund a wide variety of financial goals.
Advisers need to see both of these sectors as areas in which they can offer a valuable service to their clients at a time when traditional lending channels are flat or losing ground.”
