Equity release plans remain above pre-pandemic levels despite a decrease in the number of products after the October mini-budget, Air analysis reveals. 

After the mini-budget plans dropped from 582 in Q3 2023 to 317 in October but remain above the 314 plans pre-pandemic. 

The latest figures are also above the level of that four years ago when there were 144 plans and have risen by 94.6% from the 17 products available in 2012. 

Air says 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 is 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. 

The availability of features such as inheritance protection has increased from 63 in 2018 to 92 this year while downsizing protection has risen to 193 from 73 four years ago. 

Although variable or gilt-linked early repayment charges (ERC) have been a feature of the market since inception, Air says the surety of fixed ERCs has gained prominence rising from being available on 80 products in October 2018 to 200 last month. 

Air chief executive Stuart Wilson says: “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.”

“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.”