Stuart Wilson, Chief Executive Officer of Air Group, comments on the latest Key Market Monitor: “The year clearly ended strongly for the equity release sector and we hope this can continue into the first few months of 2021 and the rest of the year. The financial impact of the pandemic can also be viewed through the reasons why more and more customers are opting to release equity from their homes – there has been an increase in helping family members particularly in terms of support to get on the housing ladder and living inheritances. Plus of course utilising equity release to pay off both secured and unsecured debt will continue to drive customers into this space.
“This of course isn’t just a one-sector market. Later life lending now covers a wide range of options and it’s absolutely vital that we signpost consumers to later life advisers who are able to cover off all the options available to them, whether they are equity release products, RIOs, or mainstream mortgages. Plus of course, a later life lending product will not always be the most suitable option and advice will be crucial in determining which pathway a consumer should move down.
“Overall, while Lockdown 1 impacted the sector considerably, since then we have seen a bounce back and a growing demand. Advisers will remain at the heart of this sector and we will be supporting them to ensure they have access to as many product options as possible, and they have the best tech and resources to advise this growing customer demographic.”