Equity release options widen as property wealth reaches £6tn
By Gary Adams 8
th April 2021 10:37 am
The number of equity release products available on the market grew by 100 in the second half of 2020, reaching 488 by the year’s end, says the Equity Release Council in its Spring 2021 market report.
This compares to the 202 products two years previously, says the ERC.
Additionally, the number of retirement interest-only products available reached 100 for the first time ever at the end of 2020.
While the above was happening, the total value of UK private property rose to £6tn – or £4.6tn with mortgage debt discounted. This, too, is a first.
ERC: UK property wealth reaches a record £4 6trn
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The Morning Briefing: LV=’s ‘cavalier’ attitude; Tavistock’s takeover woes
By Katey Pigden 8
th April 2021 9:05 am
Good morning and welcome to your Morning Briefing for Thursday, 8 April, 2021. To get this in your inbox every morning click here.
Cavalier attitude
Mutual insurer LV= has been accused of showing a “cavalier attitude” by looking to sell itself to private equity investor Bain Capital for £530m.
A group of cross-party MPs slammed LV= for disregarding the interests of its members.
MP Gareth Thomas says: “It is perverse that at a time when mutuality is growing in other parts of the world that this course is being chosen by the UK’s second largest mutual insurer.”
Equity release market improves in H2 but still behind 2019
40,000 new plans bought
Over the whole of 2020, 40,337 new equity release plans were purchased.
Jon Yarker
The UK’s equity release market recovered somewhat in the second half of 2020, but the number of new plans taken out still lags the previous two years.
According to the Equity Release Council s Spring Market Update, there was a 19% increase in new plans taken out in the second half of 2020 (from 18,420 to 21,917).
However, in total new plans still lagged the previous two years. Over the whole of 2020, 40,337 new equity release plans were purchased.
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In comparison, 44,870 and 46,397 new plans were bought in 2019 and 2018 respectively. In total, £3.89bn of property wealth was accessed in 2020, down from £4.2bn in 2019.
The total value of private property in the UK topped £6trillion for the first time on record last year, fresh data reveals.
Mortgage-holders also made an unprecedented £5.1billion worth of overpayments in the final quarter of 2020, but regular repayments remain below pre-pandemic levels, the Equity Release Council said.
In the final quarter of last year, on average, mortgage overpayments topped around £192million a day, suggesting some households channelled savings made from enforced home-working to getting the debt on their home paid off quicker.
Discounting mortgage debt, the amount of UK property equity which is privately owned reached a record £4.6trillion. Including the debt, it s over £6trillion
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