Phoebus reacts to ERC Q3 report

26 October 2026

Richard Pike, chief sales and marketing officer at Phoebus Software:

“The Q3 figures suggest the equity release market has held up relatively well, with customer activity edging higher over the quarter despite the ongoing challenges facing the wider housing market. However, the year-on-year decline in total lending, combined with adviser feedback that case completions are under pressure, suggests that converting interest into completed business remains challenging.

“Borrowing costs and the amount of equity customers can release are clearly influencing decisions. The reduction in average initial drawdown amounts suggests that customers are taking a more measured approach to borrowing, while the rise in average drawdown reserves points to continued demand for flexibility. Rather than accessing all the money available to them upfront, customers may prefer to retain the option to draw on additional funds as their needs evolve. With advisers also reporting pressure on available loan-to-value ratios, affordability and the amount customers can borrow will remain important factors in whether they decide to proceed.

“For lenders, this reinforces the importance of having the right systems and servicing capabilities in place to support customers throughout the life of these products. Equity release is a long-term commitment, and lenders need robust technology, accurate data and clear customer communications to manage products that can remain in place for many years. While borrowing costs and wider economic uncertainty may continue to influence demand, investing in strong servicing infrastructure will help lenders manage their portfolios effectively and respond to changing customer needs as the market evolves.”