The past few years have seen many industry pundits predicting the entry of major mainstream lenders into the equity release mortgage market. However, such entry has not materialized and the fact remains that this niche sector is a long way from fulfilling its growth potential. So, why is this market stagnating? In which direction will it move? This report provides the answers.

• Focuses on lifetime mortgages
• Sizes the market in terms of gross advances split by lifetime mortgages and home reversion schemes
• Analyses potential reasons behind the lack of presence of major mainstream lenders in the equity release mortgage sector
• Provides five-year forecasts based on three scenarios


Highlights



Further analysis shows that it is a decline in new lending for lifetime mortgages that is responsible for the subdued performance of this niche sector. New business for lifetime mortgages dropped by £103 million in 2005, while, surprisingly, home reversion schemes saw an increase of £14 million for the same period.





Fears of mis-selling scandals are keeping IFAs away from advising equity release products. Although the equity release market has cleaned up its image in recent years, this sector remains very much sensitive to negative press.





Interviews carried out within the industry suggest that given the relatively high level of effort and risks involved in offering equity release schemes and the current small size of the sector, mainstream lenders are apparently waiting for the market to pick up before investing resources.



Reasons to Purchase


• Enables you to exploit the potential of the UK equity release mortgage market by providing you with a thorough analysis of this niche sector
• Learn how the competitive structure of this niche sector is changing
• Draw on Datamonitor's five-year scenario-based forecasts to plan your future strategy with confidence