The report found that growing demand for equity release products – such the Spry’s Lifetime Loans – is being driven by the cost-of-living crisis and higher inflation.
More than €15.7bn of equity is currently released each year for homeowners, but this is expected to increase dramatically by 2033, when the global equity release market is expected to reach €46bn in annual releases.
The most common type of equity release product globally is the lifetime mortgage – with the most popular form being the lump sum.
Spry Finance Lifetime Loans are available to homeowners from the age of 60. This is in line with the other countries surveyed, where equity release products are typically available to customers from the age of 55 or 60.
The report cited lack of customer awareness as the primary barrier to growth, while interest rates were cited as the most significant factor impacting the pricing of equity release products.
Spry Finance CEO John Moriarty said: “This report demonstrates the importance of equity release products such as lifetime loans for providing financial choice to older homeowners who are seeking to fund a more comfortable retirement.
“We expect the Irish market to be worth €200m annually by 2027. This growth will be driven by consumer demand and innovation, and as the sole provider of Lifetime Loans in Ireland, Spry Finance is committed to ensuring the highest standards of customer care in the later life lending sector, standards that any new entrants will have to meet.”
The report is based on data collected from equity release lenders in Australia, Canada, France, Germany, Italy, Ireland, the Netherlands, Norway, Poland, Spain, Sweden, the UK, and the USA.
EPPARG Global Survey PDF
