Equity release broker Equity Release Guru has reported that clients have continued to be positive regarding their plans for the future and are citing home improvements and holidays as the main driver.
The percentage of customers mentioning home improvements as their primary factor for releasing equity just dropped a little from Q1 to Q2 by just circa 0.1%.
At the same time, the number of customers releasing equity for holidays just dipped over the last quarter, in comparison to the initial 3 months of the year.
The good news is that the available interest rates have dropped way below the Q2 sector average of 4.45%.
As anticipated, there has been a decrease in the number of total completions throughout the last quarter due to the coronavirus and restrictions that this has brought.
I would like to confirm that this was a matter of delay and hold-ups due to the restrictions rather than as opposed to a reduction in demand.
I can confirm that as a business we saw a significant drop in completions as a result of lockdown been announced.
This was due to many factors, the main one is that surveyors could not carry out physical valuations of the properties. As a result of this, all lenders were carrying out valuations from their desktop.
This caused a large backlog of valuations and unfortunately, the desktop valuations were not as accurate as physical valuations.
Our findings were that during the same 3 months duration that there was only a small decline in the number of quotations given to the clients.
Reflecting on our June figures I can confirm that enquiry numbers and the demand for equity release are strong as ever. This may be due also to the uncertainty that people are facing employment wise after been furloughed.
We have had to be adaptable during these periods of lockdown and have used video conferencing tools to carry out discovery calls with clients and their family members.
Our release amounts for our clients are below the industry average as the advice that is given is imperative to ensure that the client is only releasing what they need and that the solution advised is the right fit for the client.
I am delighted to say that as of today we have lifetime mortgage interest rates as low as 2.36%,
Over 90% of my latest clients have accessed the circa 2.3% interest rate. The main reason for this is due to us offering whole of the market advice and not been tied to one lender’s products.
Thank you very much everyone for your support and patience in these hard and testing times.
I would like to take this opportunity to offer you our free ebook, use our free calculator and please contact me on 01924 792182 for a discovery call to see if you are eligible.