Equity release and the credit crunch

How is the credit crunch affecting equity release?

Product wise, not at all. There are no signs of any providers being short of money or changing their products.

As for potential clients, the impact seems to be more significant.

It seems that some people are standing still, even it they’re not quite sure why. They see constant stories in the media about falling house prices, rising costs of petrol, electricity, gas and groceries. Uncertainty breeds inactivity.

Maybe they are thinking “Things are uncertain and I don’t feel confident, so I will hold off doing anything.”

Is this the right approach?

Probably not. With the cost of living always rising, the need for equity release is greater than ever.

If the concern is about falling house prices, then the situation may get worse before it gets better. In which case, delaying action for a year or two may reduce the amount clients can release.

People should only take action that they feel confident about, but it is important to remember the guarantees that equity release plans from SHIP members provide.

Furthermore, with plans available that guarantee a proportion of the property can be protected as an inheritance, there is a strong case to be put for not letting the current concerns cause a delay in action.