Air Group comments on Key's 2021 Equity Release Market Monitor
19 January 2022
Stuart Wilson, CEO of Air Group – the later life services platform, said:
“One of the key takeaways to come out of this Market Monitor, is the sector’s growing maturity when it comes to refinancing and rebroking. We are a long way past the point where initial equity release borrowing is ‘for life’ and it’s clear that both advisers and their clients have been benefiting from the sector’s competitiveness, particularly in terms of lower rates but also in terms of the flexibility now offered by many lenders. A 174% increase in rebroking is clearly significant and provides advisers with something akin to a new front for activity, in terms of supporting existing clients and ensuring they are on the right product at regular intervals.
“The other point to make is around the increase in average loan size – up 23% to close to £105k – and the use of that money, predominantly in order to pay off debt and to support family members. In a sense we’re seeing uses for equity release at both ends of the mortgage ‘life span’ with customers increasingly using the products to pay off mortgages, while at the same time helping family with deposits in order to help them on the ladder. There is much to be positive about here, as we have a growing acceptance that the home is an asset which can be utilised in a variety of ways to provide all kinds of solutions. These figures should provide all later life lending stakeholders with a positive boost, particularly advisers, as they reveal a strong foundation for business and a growing demand and need amongst consumers.”
