Copy article

Later life lending and cost of living

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 12. August 2022

Interested to speak to mortgage brokers about later life lending, like equity release, and the cost of living crisis. 

A stat from Canada Life found that 20 per cent customers in the first half of the year were using equity release to support their day-to-day living costs. 

https://www.mortgagesolutions.co.uk/news/2022/08/11/most-equity-release-customers-use-product-to-clear-existing-mortgage-canada-life/ 

  1. Are you seeing more customers coming to you to use later life lending, like equity release, to support day-to-day living costs?
  2. Do you think this will become more widely used in this way? 
  3. What would your advice be to a client who wants to use later life lending products in this way?

 

1 responses from the Newspage community

Copy all

Copy

Editor
Rob Peters
Principal at Simple Fast Mortgage
The obvious risk with using equity release to support day-to-day living costs is that it might not be sustainable for the rest of the borrowers lifetime. This is a key consideration that both adviser and borrowers need to weight up. If the cash runs out and the equity release interest is eating away the value of the home, borrowers could find themselves in a worse position, than if they had selected an alternative. From a financial advice perspective, moving home or downsizing could be the right option for some clients in this situation, even if it's not what they initially want. Providing sound ethical advice doesn't always mean agreeing with what a client might want.