Why Now Might Be the Time to Discuss Equity Release with Clients
Recent global events have once again highlighted how quickly financial markets can shift. Ongoing tensions in the Middle East involving Israel, the US and Iran have created wider economic uncertainty, which is already beginning to influence borrowing costs across the UK.
We are starting to see the impact across the lending market. Personal loan, credit card and mortgage rates have begun to rise as lenders react to changing market conditions. While equity release products operate slightly differently to mainstream mortgages, they are not immune to these pressures. Equity release rates are closely linked to the government’s cost of borrowing, and those costs have started to rise. As a result, we may see equity release rates follow a similar upward trend in the short term.
Market Uncertainty Is Pushing Borrowing Costs Higher
After several weeks of relative stability in the market, this serves as a timely reminder that interest rates can move quickly. For financial advisers with clients who may benefit from equity release, whether to support retirement income, repay existing borrowing, assist family members, or fund later-life plans, now could be an important moment to review options.
If a client already has an illustration or quote in place, it is worth checking how long the rate is guaranteed for. Many lenders offer rate guarantees for a fixed period, but these windows can be shorter than expected. Ensuring clients understand the timeframe available to them can help them make informed decisions before market changes potentially affect their options.
For clients who have been considering equity release but have not yet secured a quotation, reviewing current rates sooner rather than later may be worthwhile. Keeping an eye on market movements and acting while favourable terms remain available could make a meaningful difference to the long-term cost of borrowing.
Periods of market uncertainty often present both challenges and opportunities. By proactively reviewing equity release solutions with suitable clients, advisers can ensure they remain well-positioned to support their later-life financial planning needs.
Partnering with Key Partnerships
If you have clients who could benefit from equity release but you don’t advise in this area yourself, referring them to Key Partnerships can ensure they receive specialist, later-life advice while you remain at the centre of the client relationship. Our experienced advisers work closely with you to deliver tailored equity release recommendations and keep you informed throughout the process, helping you support your clients with confidence.
