Will equity release get more costly under banking reforms?

New reforms to the banking sector are bound to raise costs, suggested a group of experts, which could see equity release get more expensive.

The fifth City of London-Swiss Financial Round Tables hosted by the British Bankers' Association and their Swiss counterparts saw bankers from both countries pondering the changes to the sector and the possible consequences on the rest of the economy.

Angela Knight, chief executive of the British Bankers' Association, said: "The impact of increasing operating costs on banks is the same as with any other company in that it affects the price of their goods and products, which in our case is finance. This in turn flows through to the wider economy as well."

Experts are keen to see how the new Budget, due to be announced tomorrow (June 22nd), will impact banking sector.

The impending budget could further underline the importance of equity release schemes, as 64 per cent of over 55s were worried about an expected rise in tax and VAT rates, according to the Real Retirement Report from Aviva.

Ashall Glover Financial Services are equity release specialists

Posted by Edward Simpson