A new equity release provider is to enter the market in January 2014.
Pure Retirement is a sister company to retirement firm Age Partnership and claims it will offer advisers “innovative equity release products”.
The company aims to become one of the top three providers in the equity release industry and believes this can be achieved through its ability to bring new products to market quickly.
The business will be run by managing director Paul Carter, who has worked within financial services for more than 30 years, with the last 16 focused within the equity release industry, covering distribution, advice and lending.
Carter said: “The equity release market is in good shape, but we believe our launch will provide it with renewed vigour.
“Equity release products are becoming increasingly relevant to today’s retiring population, as traditional forms of retirement finance continue to come up short. But in order to adjust to a changing landscape we too must adapt our approach, and this is precisely why we have decided to launch Pure Retirement. We believe our fresh approach to the products will make them better suited to meet the needs of consumers.
“We are proud to be the first new provider in the market for more than three years. Although the process of launching a new company such as Pure Retirement is lengthy and complex, we expect to see more providers follow our lead as the equity release market continues to grow.”
Pure Retirement has confirmed its membership of the Equity Release Council. Nigel Waterson, chairman of the Equity Release Council, said: “The launch of Pure Retirement is an acknowledgement of the increasing relevance and popularity of equity release products among today’s consumers. Pure Retirement is the first new equity release provider to enter the market since the summer of 2010, and therefore this is a significant step that signals the industry’s current health and future potential.
“The equity release market is growing; the total market value for this year looks set to pass £1bn for the first time since 2008. Inadequate savings pots and pensions are causing an increasing number of people to look elsewhere to fund their later life – and property is proving to be an increasingly valuable asset, especially in light of the current rises in house prices.
“The addition of another regulated, expert equity release provider will further strengthen the sector’s ability to meet a range of financial needs in retirement. As the market continues to grow we expect to see other lenders follow the lead of Pure Retirement, which will not only improve consumer choice but also encourage a healthy level of competition.”