| Description: | This report introduces Fitch’s approach to rating securitisations of
mortgage-backed equity release schemes in the UK and Australia. As
the populations of both the countries age, there is an increasingly
broad awareness of the need to develop new ways of releasing
personal wealth to the elderly population. Given the large improvements in life expectancy, the cost of healthcare and the
potential shortfall in pension provisions, many elderly individuals may have to tap the wealth held in their homes to bolster their income. In addition, the desire of early retirees and others to gain access to cash for lifestyle purchases, such as holidays and home improvements, may also add to demand for such finance. |
