Insights Hub

Early experiments

The roots of equity release: Basic home reversion schemes emerge – often unregulated. Julian ‘Hodge’ introduces first lifetime mortgages.

SHIP is formed

Safe Home Income Plans (SHIP) launched by providers like Norwich Union, GE Life, Home & Capital. Introduces first voluntary consumer protection standards.

Shared Appreciation Mortgages (SAMs)

Barclays and RBS launch SAMs: 0% interest loans linked to property growth. Backlash follows, and product is withdrawn.

Gilt-linked ERCs & funding challenges

Lump sum plans with gilt-linked ERCs dominate. Funding is limited; little product innovation and market stagnates.

Regulation begins

Lifetime mortgages become regulated under MCOB by the FSA. Advice and suitability become mandatory.

Adviser qualifications become mandatory

Advisers must now hold an approved qualification (e.g. CeRER) to give regulated equity release advice.

Drawdown is launched

Drawdown plans introduced allowing flexible access to funds, reducing risk and supporting benefit-sensitive clients.

Financial crisis hits

Property prices fall, lending tightens, and some providers exit temporarily. Lending volumes approx £500k - 1m.

SHIP becomes ERC

SHIP becomes the Equity Release Council, expanding standards and introducing professional membership.

Voluntary repayments & fixed ERCs

Aviva launches voluntary payment feature and fixed ERCs gradually start replacing gilt-based structures.

Legal & General acquire New Life

By acquiring New Life, Legal & General enter the equity release market to become new mainstream lifetime mortgage lender

Increasing lender competition

With more lenders in the market, product innovation begins. New features include 3-Year Compassionate ERCs, Downsize and Inheritance protection

Industry matures

Total lending reaches 3.94bn with over 83 product variants. Canada Life & Onefamily enter the market. RIOs launched.

Equity release hits £4bn

Market reaches record lending levels. Product count reaches 300 with the first interest servicing plans launched.

COVID-19 disrupts

Consumer uses shift due to pandemic. Remote advice, desktop valuations introduced to keep market moving. Digital adoption increases by clients age 55+.

Record low interest rates

Rates fall below 2.5%. Property wealth at a record £4.6 trillion. 68% of products allow voluntary payments, 89% fixed ERCs.

Rates surge post mini-budget

Record lending of £6.2bn. Later, Truss’s mini-budget sees soaring rates shake market confidence. Lenders reprice and reduce LTVs.

Smart tools reshape advice

smartER tech grows in usage for clients own research. Lending drops over 50%. Canada Life temporarily exit market. Rates rise sharply to over 8%-9%.

Stabilisation and recovery

Product choice starts returning along with reduction of interest rates. Shift to drawdown evident due to market uncertainty.

Rise of interest servicing

New interest servicing options allow clients pay part or all interest, reducing roll-up, improving balance management and unlocking lower rates.

TERN launches

The Equity Release Network (TERN) is born – powering growth for advisers in later life lending.