Prudential is to pull out of the equity release sector

Prudential will stop writing new lifetime mortgage business early next year.

Prudential follows a lengthening list of equity release providers to pull out of the market - Northern Rock, Saffron Building Society, Coventry Building Society and Retirement Plus, plus In Retirement Services who have gone into administration.

Aviva, Just Retirement, and LV= are the main players still writing new business.

Equity release was once trumpeted as a way of paying for long term care, until the house price crash reminded us that there is no law that says house prices must always rise.

Equity release is not a good way of paying for long term care.

Long term care: News update: 29 November 2009