There has been a slowdown in the equity release market following the coronavirus outbreak.
Equity release providers are still taking applications and agreeing to lend but most of them are working out the best way to assess the value of properties while valuers cannot physically inspect them.
Most of the equity release lenders are waiting for sign-off to use desktop valuations where they use system-generated valuations to confirm how much a property is worth. Lots of them are conducting risk assessments to work out if this should happen because they tend to be very sensitive about the type of properties they will lend against.
Aaron Strutt, product director at Trinity Financial, says: "Equity release mortgage lenders tend to send a valuer to physically value properties so once an application is approved the case is pretty much on hold subject to the property valuation. Some lenders have the client's name added to a list for valuers to visit when they as free to work again."
Trinity Financial comments were recently in The Telegraph's article highlighting the lenders providing the cheap-ever equity release rates.
Call Trinity Financial's equity release specialist Jed Newton on 020 7016 0793 to secure finance
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.
There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £495 at application and £995 on completion of the mortgage.
A lot of older borrowers (often over 65) looking for equity release mortgages want the lump sum payments for a variety of reasons including home improvements, gifting funds to family members and paying off existing mortgages that have come to the end of their term. They also use the cash to supplement their lifestyles and pay for things like lease extensions.
While face-to-face meetings have temporarily been put on hold our specialist equity release adviser is available via Skype or Facetime for meetings. He is also available for telephone consultations.
As part of the equity release advice process our specialist, Jed Newton, would typically have two face-to-face meetings with clients and their dependants or children if they are involved in the process. This is still possible proving borrowers have access to the internet or a smartphone.
The biggest equity release providers were been busy lowering their rates prior to the coronavirus and there is a selection of lenders offering sub-3% mortgages. They often have the option to make 10% overpayments and/or pay the interest so the equity in the property is not eroded over time.
The improvements to pricing and increased flexibility of the products have moved equity release from being a product of last resort to a sensible consideration for many people in their retirement.