“The new Nationwide Lifetime Mortgage will enable those with equity in their home to access their capital and use those funds flexibly to meet a range of needs. We welcome the FCA consultation on later-life borrowing and we hope this will spark further innovation in this sector going forward.”
Kevin Woods, an adviser at The Right Equity Release, said: “Equity release is a growth area because of all the interest-only mortgages coming up to maturity. Building societies are now taking action because borrowers are not able to pay off interest-only mortgages.
“Equity release is a solution for older clients who may want to help their grandchildren get on the property ladder.
"It will be good to have more lenders enter the market, but it is a specialist market. The rates I have seen from Nationwide appear to be equivalent to what is out there already.”
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Although there are already several lenders in the equity release market, a high street group such as Nationwide is bound to raise the respectability of a sector that has had a troubled past. Advisers will certainly welcome more competition in the market.
Ima Jackson-Obot is features writer at Financial Adviser