Rising house prices, low long-term interest rates, and an ageing population that is asset rich but cash poor is pushing equity release into the mainstream as a way for people to unlock wealth and help fund a more comfortable retirement.
However, perceived high rates on equity release plans have put people off this option in the past leading two fifths (40%) of advisers to believe that a reduction in rates to 5% or lower would make a major difference to demand for plans among clients.
The potential growth in equity release is convincing advisers to focus on the market - 32% believe pension freedoms will lead to an increase in advisers taking qualifications in equity release advice.
Dave Harris, CEO of more 2 life, commented:
“Advisers feel there is a need for them to get clued up on the equity release market as they recognise it will play a huge role in helping them advise their clients on the best options for retirement.
“With equity release rates at their lowest in ten years and the long term trend for rates continuing to go down, we expect the market to continue to expand. We want to create new and innovative products that make equity release a proposition impossible to ignore, by driving down rates and offering flexibility and choice.”
