With the return of Stonehaven to the equity release sector last week, it could be that the equity release market could be set to see a revival in 2011.
Stonehaven is one lender that withdrew from equity release just twelve months ago in the first quarter of 2010 when its own funding dried up. Stonehaven has not commented on the size or source of its new line of funding.
The lender was not the only one to withdraw from the equity release sector last year, including names such as Prudential, Northern Rock, Retirement Plus and Coventry Building Society.
In an article on the Mortgage Strategy website, Lifetime Living representative Simon Chalk is in talks with at least three other lenders who are also set to re-enter the equity release sector.
The Chief Executive Officer for Retirement Plus, Duncan Young, also expects that this increase in supply will further cause demand to rise and so he is hoping more lenders will re-enter the market. He added that Retirement Plus is moving towards re-entering, although they are not quite there at the moment.
As supply and demand increase, no doubt more and more mortgage advisors will look to offer equity release advice too. Mortgage advisors must have taken their CeRER training to offer advice in this specialist area, which they can do at any time following their CeMAP training.
The new range from Stonehaven includes an option called Interest Select, allowing borrowers to repay part of the interest each month.