The equity release market is set to become more popular throughout the coronavirus crisis as consumers look for ways to raise cash, experts have predicted.
Although advisers have warned of business failures in the mortgage broker space, Alan Lakey, director at Highclere Financial, also saw opportunities for brokers and lenders to stay afloat, or capitalise, on the current market.
He predicted equity release would become more popular as some consumers looked for ways to raise cash.
“With the equity release age starting at 55, people who are working and who have a mortgage could think ‘how am I going to pay for that?’.
“As consumers will see that as a way forward, brokers should make sure they can advise on it.”
Scott Thorpe, co-founder of The Money Group, agreed. He said brokers typically turned to specialisms as a way to plug the gap in a downturn and that it was natural they would “stampede towards equity release”.
He added: “I have already noticed many advisers now pivoting during this downturn and rushing to take the equity release qualification.”
In fact, the support a lifetime mortgage could provide as markets tumble was “what the wealth market is missing”, according to Rory Gravatt, later life lending expert at Altus Consulting.
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