Younger homeowners expected to release property equity in 2020

27 February 2020

Average age of equity release borrowers expected to fall 

The average age of new equity release customers in the first half of last year was 70 for new drawdown plans and 68 for new lump sum plans. However, a survey by equity release lender Canada Life found that nearly 40% of advisers expect the average ages of borrowers to come down in 2020

The key reasons triggering younger borrowers 

Two key reasons are behind the expectation that younger homeowners will look to release equity from their property this year: 

The need for expert equity release advice

Taking out an equity release plan at a younger age can, however, have long-term implications if you don’t repay the interest on your loan. The longer you have an equity release plan, the more interest you can end up owing on it, so getting expert advice is even more important,” commented the director of 55+ Equity Release, Jan Johnson. If you’re thinking of taking out an equity release plan when you are still in your 50s or 60s, it’s even more important to get expert, honest advice to explain to you how rolled-up interest works and what this could mean in the long term.

Our advisers will always talk you through the pros and cons of equity release in plain English, so you fully understand the consequences of any decision you make. The requirement for you to have independent legal advice will also help safeguard your best interests.” 

If you have an interest-only mortgage that is due to mature, or if you want to help children or grandchildren onto the property ladder, our advisers will be able to help you weigh up the different options available to you. 

Book an initial, no-obligation consultation

During the current coronavirus outbreak, we are conducting these over the phone or by video call.

Talk to an expert