Barclays quashes equity release rumours

Following the FCA’s recent review of the interest only mortgage sector banks have been continually linked with a re-emergence into the equity release sector as lenders look to find a way to potentially solve some customer’s capital repayment issues.

Rumours of an entrance of a big name bank into the equity release sector has led to speculation from a number of sources that Barclays could be one of the new entrants.

However a Barclays spokesman said: “There is certainly a place in the market for equity release and it is likely that we will see these products increase in coming years. However, Barclays has no current plans to enter this market.”

Barclays said that at present it is focused on other dilemmas for homebuyers such as getting people onto the property ladder and providing long–term value and flexibility for homeowners and remortgagers.

Chris Prior, manager of sales and distribution at Bridgewater Equity Release, said: “The Equity Release Council recently suggested that more banks may become active in the equity release market given the interest only time bomb and it would have been good to see the likes of Barclays enter the sector.”

Barclays last looked at re-entering the equity release market in 2006 but eventually decided against the move.