The Home Reversion market will benefit from the upcoming recession says from the Norwich Union. Pensioners will see a dramatic effect on their savings and this will mean that they will turn to Equity release Schemes as the way forward.
Pensioners accessed £1.2bn through equity release in 2007 and Norwich Union thinks the market will hit £2.4bn by 2013. It went on to say that market conditions may lead to equity release doubling from last year’s levels over the next five years.
Lack of retirement funding will fuel this and there is a likelihood of mainstay, high street lenders starting to provide advice and equity release products. They will be attracted to supplying the forecasted 1.5% of home owners over 65 using equity release products.
Norwich Union’s 10 year’s experience of the market have left them seeing many changes. The economic recession will be bad for many parts of the economy but equity release products will actually benefit.