At Oportfolio Mortgages, we regularly work with clients who require more specialist borrowing advice, including later life lending and equity release. Because equity release is a highly specialised area of the market, we work closely with trusted specialists to ensure clients receive expert advice tailored to their circumstances.
One of those specialists is Mike Hardy from The Equity Release Experts, who recently shared his thoughts with us on how the market is evolving in the current economic environment.
A More Challenging Market
Like many areas of the mortgage market, equity release activity has slowed compared to the exceptionally active conditions seen during the ultra-low interest rate environment.
Higher borrowing costs and wider economic uncertainty have understandably caused some homeowners to delay decisions around later life lending. However, despite these challenges, Mike Hardy believes the market has shown resilience.
“While activity has slowed compared to previous years, the market has remained more resilient than many expected given where interest rates currently sit.”
How the Market Has Changed
According to Mike, the market has evolved significantly over recent years.
New lenders entering the market have increased competition, while products have generally become more flexible and consumer-focused.
This has helped create:
- Greater product choice
- More flexible lending options
- Improved features for borrowers
In our experience, many homeowners are also becoming more aware of equity release as a potential financial planning tool later in life.
Changing Reasons For Borrowing
Mike also highlighted that the reasons homeowners are using equity release have changed in recent years.
Historically, it was often used for:
- Holidays
- Gifting money to family
- Lifestyle spending
Now, there is increasing demand for more practical or needs-based borrowing, including:
- Debt consolidation
- Home improvements
- Supporting retirement income
- Assisting family financially
This reflects the wider financial pressures many households continue to face.
Equity Release And Downsizing
Another trend Mike has observed is an increase in homeowners using equity release when moving property later in life.
For some borrowers, this can help:
- Improve affordability
- Reduce financial pressure
- Purchase a more suitable property in retirement
This trend may continue as homeowners increasingly look for flexibility and additional financial support later in life.
Will Equity Release Rates Improve?
While nobody can predict interest rates with certainty, Mike believes improving market stability may gradually support activity returning to the sector over time.
“As borrowing costs stabilise and confidence improves, we are beginning to see more clients revisit conversations around later life lending.”
As with the wider mortgage market, future activity will likely depend heavily on:
- Inflation
- Interest rates
- Economic confidence
- Lender competition
Is It Right For Everyone?
It can be a valuable solution for some homeowners, but it is not suitable for everyone.
It is important to understand:
- The long-term cost of borrowing
- The impact on inheritance
- How interest accumulates
- Alternative options that may be available
This is why specialist advice is essential before making any decisions.
Speak To Oportfolio About Equity Release
If you are considering equity release or later life lending and would like to understand your options, feel free to get in touch. At Oportfolio Mortgages, we work closely with trusted specialists who can provide expert advice tailored to your circumstances. We would be happy to introduce you to Mike Hardy for a more detailed discussion.
Equity release mortgages in the UK are regulated by the Financial Conduct Authority (FCA). Many equity release products and advisers are also members of the Equity Release Council, whose standards provide additional consumer protections beyond FCA regulation. Advisers arranging equity release must hold specific FCA-recognised equity release qualifications.
