Property News

Pru: "High demand" for equity release - 03/05/2006

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Consumer demand for equity release products is high, according to the latest research from Prudential.

Nearly half of customers would think of taking out a lifetime mortgage, where a loan is taken out on one's property either as a lump sum or through regular cash payments.

A further 12.9 million would consider using their property to help fund their income in later years.

Despite this, confidence among consumers is relatively low with 83 per cent of financial advisers saying that their customers have an "information gap" about equity release.

As a result, Prudential has called on financial advisers to meet the demand among consumers for equity release products while providing a better understanding of the product.

Jan Holt, head of sales for lifetime mortgages at Prudential, commented: "This is a good time to be an adviser in the equity release market. Demand is high and people need educating."

Recently, the Financial Services Authority announced measures to regulate home reversion plans – another equity release product.

This marks the first move to impose a standard on the home reversion market, though lifetime mortgages have already been regulated for some time.

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