Mirfin acknowledged the interest-only issue, but said it only represented a problem if there were no solutions and reasoned that equity release could well be the answer for many individuals. However, he was keen to stress the importance of individuals – and the sector as a whole – acting early and not leaving things too late.
The equity release market has enjoyed an increase in profile this year and Mirfin pointed to some impressive figures from the Key’s Q3 Market Monitor research to confirm this. Lending is up 11% year-on-year and the number of plans taken out has also risen by 10% from Q3 2011.
Mirfin also highlighted the increasing percentage of the market accounted for by drawdown as further proof that the equity release market is on the up.
Dean Mirfin, Group Director of Key Retirement Solutions, commented:
“Older homeowners face a number of problems such as endowment shortfalls, being trapped in interest-only mortgages with no repayment vehicle in place and a reduction in income as they head into retirement. As an industry, it is important that we help spread the message that equity release can help meet different needs and we need to help people understand all of their options.
"The interest-only issue will only become a greater problem if we don’t look for the right solutions in the right places, so it is important that advisers and providers are available to assist with this.”
