Jump to content
House Price Crash Forum
Sign in to follow this  

Equity Release The Next Big Market For Lenders.

Recommended Posts

According to Safe Home Income Plans SHIP, the trade association which represents 18 equity release lenders and over 95 percent of the market, a survey conducted amongst its members reveals that SHIP members predict that the equity release sector will become more competitive from the first quarter of 2006.

Win win situation for lenders - if HPs rise this is a new source of income to replace the penury of FTB mortgages. If the market crashes well they can repossess and sell to the FTBs again.

My logic might be at fault, please feel free to wade in.

I'll let someone else do the SHIP joke.

Reuters article:

Equity release should get more attractive

Share this post

Link to post
Share on other sites

now I assume that means they have to compete harder and offer better rates for the remaining available business since many have already MEWed to the hilt, and there are potentially Fewer Mewers now *titters at alliteration* :rolleyes: .

However, it could possibly mean they anticipate more, or a continued amount of people releasing equity.... even though we've seen this increase dramatically and expect it to dry up due to no more significant HPI, I can think of 2 possible reasons why this might not be so....

1. Baby boomer population retiring and mewing a bit to supplement pensions and live the high life for the next 10 years or so, still able to afford repayments and leave an inheritance, and

2. people who have not yet mewed, still with equity, who could mew in order to meet increased mortgage repayments in the event of an IR increase... a temporary measure that could work for some.

edited: ah yes, just looked up the article and it is indeed about the former. There's a surprise :D

Edited by xian

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.