A survey of the market's main equity release providers has found that this type of mortgage will thrive in 2006, thanks to high consumer popularity and strong competition between mortgage lenders.
Consumers are to be the industry's main benefactors this year, according to a member survey by Safe Homes Income Plans (Ship), which predicts that the first quarter of 2006 will see interest rate cuts fuelled by competition between mortgage lenders.
The survey also managed to give a picture of the consumer's ideal equity release mortgage, which mortgage lenders believe would consist of flexible drawdown, low interest rates and a good loan-to-value ratio.
Jon King, chairman of Ship, commented by saying 2005 has been "a very positive year" for the equity release industry, with low interest rates, growing consumer demand and new providers entering the market "all helping bring equity release into the financial mainstream".
"The Ship member survey shows that 2006 is likely to be even better for consumers with greater flexibility, lower costs and continued product innovation."
Increased flexibility, lower interest rates and lower fees are all expected to be common product features this year, as well as the removal of early repayment charges.
Other equity release mortgage product features expected to be popular in 2006 are secure income options, pensions tax planning, and low or fee-free remortgaging.
Equity release mortgages to flourish in 2006, experts say
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Equity release mortgages to flourish in 2006, experts say
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