OLDER home-owners can learn more about how to unlock the value of their property to provide a lump sum or a regular income with a new guide to equity release from the Council of Mortgage Lenders.
Equity release currently accounts for only around é1bn of outstanding mortgage lending. But even the most conservative estimates put the potential size of the market at around é50bn, with more realistic estimates suggesting the figure could total é100bn. This means that equity release has enormous growth potential.
However, both lenders and consumers regard the market with some caution, and the CML's new guide should help build a solid foundation of understanding for consumers.
The new guide has a Plain English crystal mark, and aims to explain clearly how the various different types of equity release schemes work.
It outlines the different ways of releasing equity, and suggests questions that consumers should consider. It also answers an extensive list of frequently-asked questions.
Peter Williams, CML Deputy Director General, said: "The combination of an ageing population of home-owners, greater reliance on self-provision, and the decline of the welfare state, means that equity release is inevitably a serious option for a large and growing number of older people who find themselves asset-rich but cash-poor.
"But the market must develop safely and sensibly, and lenders recognise the need for sound products and good advice. That is why the CML is publishing the new guide to help steer people through the issues they need to think about before deciding whether equity release is suitable for them." Tweet