"These advancements underscore the sector's adaptive strategies and focus on delivering quality service amidst evolving market demands."
The equity release market is showing signs of revival according to the Equity Release Council’s latest figures released this month. Its latest quarterly market report showed that new customer numbers rose by 12% in Q2, compared with Q1, while total lending rose 15% to £578m.
This significant rise in the number of customers taking out new products resulted in Q2 2024 being the busiest quarter for almost a year for the equity release market, in terms of total customers served and total lending activity. This has to be great news for all, whether you are directly involved in the sector or not, as a growing equity release and later life lending market is vital for the health whole mortgage and lending market.
As the Equity Release Council stated in their latest report: “Refinancing an existing mortgage, including interest-only loans, continues to rank as the biggest driver of current market activity. The innovative design of modern lifetime mortgages means anyone taking this route will have lots of ways to smooth the transition, not least the freedom to make repayments when they can afford to without the risk of repossession looming over them.”
We’ve recently seen the likes of Buckinghamshire Building Society offer a five year fixed rate option to their RIO proposition. Such product enhancements and development show that many lenders continue to see later life lending as an area with untapped potential.
Within our Mortgage Lender Benchmark, we report on the later life sector. The H1 2024 report showed providers continuing a trajectory of improvement, showcasing significant gains in broker satisfaction and overall performance, and narrowly missing out on being the highest-rated sector by a mere 0.2 percentage points.
The latest edition revealed a remarkable two-fold increase in the sector's share of reviews, bolstered by the new inclusion of Responsible Lending and the re-entry of LV=. Leading the pack, Pure Retirement impressed with a stellar overall satisfaction rating of 93% and the highest Net Promoter Score (NPS) at +84.8, indicative of exceptional broker confidence and robust service delivery.
As a new entrant, Responsible Lending posted strong results with an 89.2% overall satisfaction rating and an NPS of +61.5, joining L&G and Aviva in demonstrating solid performance in operational efficiency and broker engagement. Satisfaction scores for these lenders consistently exceeded 80% across various service dimensions. L&G also showed significant improvement in sub-metrics, climbing to third place.
Overall, the lifetime sector has experienced a remarkable surge in its NPS, rising to +53.2 in H1 2024 from +34.5 in H2 2023. This leap signals a strong upward trend in broker recommendations. The sector's continuous improvements in process ease and speed, effective communication, and robust online systems highlight its dedication to meeting broker needs. These advancements underscore the sector's adaptive strategies and focus on delivering quality service amidst evolving market demands.
