Housing Wealth Chart

The Need for Cash Flow Modelling Is Even More Relevant Now That Sales Are Really Shooting Up

The Equity Release Council has just released the latest equity release lending figures for the first quarter of 2019.

The figures show:

  • The busiest start to a year on record, with £936m of housing wealth unlocked by homeowners aged 55+ during Q1 2019, an 8% increase year-on-year.
  • Total customers served between January and March increased by 10% annually to reach 20,397, including 10,854 plans agreed – up 6% from Q1 2019.
  • Average withdrawals per customer remain steady as the market grows – and while Q1 has begun at a lower level than Q4 2018 left off, this mirrors the typical seasonal pattern seen around the turn of the year for much of the last decade.

The release also includes member views from the recent member Census on the key drivers of market activity across different age groups.

To view the full report, please click on the Equity Release Council logo immediately below.

Equity Release Sales Are On The Rise

Are you happy that your clients’ descendants will never complain that they discovered how equity release works? You need to seriously think about Cash Flow Modelling.

I read an article confirming the Equity Release Market continues to expand in leaps and bounds. Between January and June this year, £1.71 billion of wealth was released, which confirms a 37% upward growth of the market. According to the Key Retirement’s Equity Release Market Monitor, more was released in the first six months of 2018 than over the whole of 2017. There were 22,816 plans sold. A staggering £9.5M property wealth released each day.

The average size of equity release throughout the UK also increased to almost £78,000 and this included was a 5% year on year increase in distributions given out as gifts to families.

Forgive me for repeating it, as I have been known to bang on incessantly, that…

“It’s always better to receive a gift given from a warm hand rather than a cold one”.

But what if a disgruntled inheritor, hasn’t inherited the inheritance they were expecting because it has all been spent? This is where Cash Flow Modelling comes in. For me, CashCalc’s Cash Flow Modelling tools are the best I have yet found in the market.

CashCalc Modelling Process

Have you heard about Equity Release with the “CashCalc” Modelling Process?

See the video on this page, as I believe that this is the essential tool which will stop inheritors, dead in their tracks, from pursuing and proving ‘an equity release mis-sale’ in years to come, after the current plan holders have passed away.

We believe this to be the major difference between the MaxLyte Financial Cash Flow Modelling Method and the standard practice adopted by other equity release qualified advisers.

Discover it and you will be able to explain to your clients that you have done the Due Diligence on Equity Release with “CashCalc” Modelling Process and can confirm that it will guide them through the entire Equity Release journey throughout their later life.

Fully explore the nuts and bolts of how this system works – I’ll be only too happy to share this with you.

This is the way forward for safest equity release.

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