Equity release product numbers remain above pre-pandemic numbers, despite a fall in the number of available products on the market after the government’s mini-Budget.

According to analysis by later life services platform, Air, product numbers fell from 582 in Q3 to 317 in October this year, although this was still just slightly up on the pre-pandemic total of 314.

They are also substantially above those recorded just four years ago, when there were 144 plans, and huge amount up on 2012 levels, when there were just 17 available plans in the equity release market. This means that for every one product available in 2012, there are now 18 products built to meet customers’ needs in October 2022.

Air stated that all the core product features which make modern equity release products more flexible than their predecessors, have also increased over the last four years.

The ability to make ad hoc interest payments within lenders criteria without incurring an early repayment charge is now the fifth Equity Release Council product standard and available across all new eligible products. The number of plans that allow ongoing payments to manage the roll up of interest has also increased from 22 in 2018 to 190 in 2022.

“While there is no doubt that the mini-Budget saw lenders in the equity release market, as with other residential markets, pause for breath, the number of plans is higher than pre-pandemic and customers have access to a wider range of features than ever before,” commented Air CEO, Stuart Wilson.

“In the current uncertain environment, being able to find a customer the right fit for their individual circumstances is even more vital as, while people still need to use their housing equity, they are being naturally cautious around making decisions.

“Being able to explain that there is downsizing protection and the ability to guarantee an inheritance, in addition to a fixed rate for life and safeguards like the no-negative equity guarantee, should provide both customers and advisers with confidence.

“Advisers need to focus on getting the basics right as there is no question that with rising residential mortgage rates, pensions being squeezed and families looking for support that over-55s need to consider all their options and make choices that work for them now and in the future.”

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