Canada Life Home Finance has responded to figures released today by the Equity Release Council, which show the UK equity release market reached £1.85 billion in the first half of the year, on par with the first half of 2018.
More than 7,000 new drawdown plans were taken out in Q2, up 5% from Q1 2019 and 2% from Q2 2018.
Alice Watson, Head of Marketing and Communications at Canada Life Home Finance, said:
“It’s great to see that the equity release market reached £1.85 billion in the first half of the year, on a par with the first half of 2018. However, a drop in new lump sum lifetime mortgages to the lowest level seen over the past year suggests the market has slowed, possibly in response to the political uncertainty in the UK."
“On the back of yet another record-breaking year for the market in 2018, and strongest ever quarter in January to March 2019, it was looking like the market’s rapid growth would continue in 2019. The slight dip in performance will likely be temporary as homeowners take stock of the current political climate. However, the sector shouldn’t ignore that the number of homeowners considering their property wealth alongside other assets remains high."
“There is still a chance 2019 might break records, as the numbers also suggest that the popularity of the product is increasing, with the number of customers drawing down from existing lifetime mortgages growing over the quarter. To meet this increased demand, we need to ensure that advisers have the right tools at their disposal to help customers with their lifetime mortgage needs.”