Equity release is a huge financial and lifestyle decision that shouldn’t be taken lightly, and during precarious times like the present, people tend to be even more cautious with their finances.

When looking to access cash, borrowers are advised of all other options before they consider equity release. It is typically the option of last resort due to widely held negative perceptions and misinformation.

However, the sector has come on leaps and bounds in recent years and equity release is fast becoming a mainstream financial product. For those looking to borrow cash, now could be the right time to consider equity release.

Property market reopens

As lockdown restrictions are lifted, the property market was one of the first industries to reopen. As the market gains momentum, many homeowners will be looking to unlock cash tied up in their home to ease financial pressure.

What’s more, the volume of enquiries about using equity release for gifting purposes has risen as older homeowners look to support family and younger generations who are financially impacted by the pandemic.

Economic outlook

However, the property market is showing signs of weakening and prices are expected to fall. If property values plummet, borrowers could be left with significantly less cash to borrow at a time when they need it most.

These circumstances are exacerbated by the wider economic outlook, which could impact the availability of finance, leaving borrowers with fewer options to access cash.

Better choice and flexibility

Equity release has become an increasingly popular option for older homeowners due to the choice and flexibility now available.

There are hundreds of products to choose from to best suit individual needs. For example, borrowers now have the option to make monthly or annual interest repayments which enables them to avoid compound interest and retain as much equity in their property as possible.

What’s more, interest rates available are some of the lowest the sector has even seen.

With these factors in mind, now could be the right time to speak to an independent financial adviser about whether equity release is the best option for you.


If you would like to learn more about equity release and to discuss your options, call Barry Leigh, one of our Equity Release Specialists, on 07980210953 or email barry@prpltd.co.uk.

If you’re one of our clients and would like some guidance, or if you’re an introducer looking for advice on behalf of your clients, please feel free to get in touch with Barry Leigh.

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