However there is a very important reality to equity release and that’s the fact that it offers a lifeline to many people. Whether Martin Lewis Likes equity release or not it’s an essential product that will continue to become more popular because quite simply there is an increasing number of people who want or need to tap into their equity.
It’s obvious, and for many of us in the industry it’s what we believe to be an inevitability, when faced with limited choices, no option to downsize for numerous reasons (one being a lack of suitable property) turning to the money tied up in your bricks and mortar is a clear choice. This does not mean equity release is a product of last resort but a perfectly reasonable option for potentially a huge number of customers.
The bigger this market grows the more it will benefit the customer. The reasons are clear but for some reason we as an industry struggle to get this message through to a variety of journalists and commentators who simply refuse to accept both the customer need and the changes to products over recent years that has led to very flexible, innovative and competitive products, not to mention the extensive safeguards.
Its simple economics, the bigger the demand the better the marketplace will respond and the better the outcome will be for the customer. More choice, more flexibility and better processes, an evolution we are experiencing now but one that could be so much faster with an all-round better understanding.
So the question is how do we do this? How do we help a wide audience get to grips with modern equity release and shake off the shackles of a reputational legacy which some cling on to regardless. In my mind there is only one way. Firstly we have to accept, as an industry that there are undoubtedly improvements that can be made and this will likely always be the case in an evolving market. We need to consider the implications of compliance, the structure of the products, and services associated with the sales process. We need to stand up and face our critics but in a fair open and honest way. Let’s hear all the awkward and difficult questions that the likes of Martin Lewis has burning within him and let’s actually discuss it in an open forum so we can continue to improve and evolve. If we can do this we will have an opportunity to highlight the changes already made and address inaccuracies some still have buried deep in their psyche , we may also uncover some important points that could go a long way to improving the impression some have of equity release and we may learn something.
A defensive attitude is understandable given how hard numerous people and companies have worked. Couple this with an understanding of just how many customers are very satisfied with their equity release it is easy to understand industry reaction to comments from, amongst others, Andrew Castle and Martin Lewis. However what we need now is a structured debate, a right to reply and a chance to respond to what some might perceive as difficult questions. This needs to include a wide but appropriate attendance and it needs to reach the public. We don’t want to go to battle, we want to understand why certain people hold certain views and we need balance coupled with a deeper understanding amongst critics and consumers, which in turn will actually benefit the customer instead of perpetuating myths and inaccuracies.
