(1888PressRelease)
May 09, 2007 - Just Retirement, which specialises in providing housing equity release schemes to people nearing retirement, has announced its equity release mortgage advances have increased by 9.6 per cent in the last year to £34.1 million.
What's more, Mike Fuller, chief executive of Just Retirement - which also offers annuity policies - expects demand for equity release to remain healthy.
'The underlying drivers of the annuity and equity release markets are strongly positive and we believe are set to remain favourable for the foreseeable future," he said.
It is thought that a combination of under-funded pensions, low annuity rates and pensioner debt is underpinning heightened demand for equity release for pensioners.
National Homebuyers also offers equity release, as well as the opportunity to sell a property to the firm and subsequently rent it back.
This provides both financial security and the continued opportunity to live in the family home.
Information released by the UK's largest 'sell and rent back' provider backs up the Defaqto report. Julian King, director of National Homebuyers, says: "Sell and rent back is a very viable option for people considering equity release but find the process complicated or restricting.
"Interest on our product has been growing dramatically over the last 12 months, with enquiries up 800 per cent year on year.
"It is difficult for some people to find ways of funding their lifestyle in retirement and sell and rent back, like equity release is a very real option for thousands.
"That combination of pension income problems, low annuity rates and debt is the reason more and more people are considering options like National Homebuyers."
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