Equity release schemes 'set for future growth'

The market for home equity release schemes is set for a "vibrant" future, it is believed.

Several factors make the sector well-placed for growth as consumers increasingly look to derive the benefits of equity release mortgages, according to the fifth annual members' survey from SHIP, the UK's trade body for equity release product providers.

More than half of respondents (58 per cent) in the survey believe equity release products are fulfilling a growing consumer need.

Increasing political awareness about the importance of equity release was cited as a favourable factor by five per cent of those questioned, with 32 per cent of respondents believing that SHIP's robust code of conduct is a plus point.

Andrea Rozario, director general of SHIP, expressed hope that 2010 will be the year when "concrete results" are seen in terms of political parties recognising "the role of equity release in easing the retirement funding crisis".

Meanwhile, separate research from the Co-operative Bank Mortgages has indicated a growing consumer trend of making mortgage overpayments - a development that could bode well for equity release schemes in future.

Ashall Glover Financial Services are equity release specialists