"We should be telling customers that equity release is here to stay and ensure customers are confident that they will still be able to access their housing wealth via lifetime mortgages or lending in retirement"
I don’t believe anybody knows what’s going to happen for sure right now, not even the numerous pro-Remain experts. But what I do know is, we’re going to have to ride out this current wave of uncertainty and hopefully we will, for the want of a better word, crash onto the shores of a better future even if it has to be outside the European Union.
However, it is understandable that people are concerned and are looking to assess their financial positions, especially those approaching retirement. According to some reports lifetime mortgage enquiries have jumped since the Brexit result and indeed the uncertainty can have a positive knock on effect on customer enquires as we have seen for ourselves at Bower and clearly this is something we need to continue to monitor. No matter who is enquiring we should of course do our best to continue providing the best advice possible, but the questions we need to ask customers may very well change in this new, post-Brexit environment.
It has been reported that those enquiring have been concerned that equity release may not be around for long, that the entire industry may now disappear because we’re leaving the EU. I’m not certain where these concerns have come from, but those who have been looking into equity release as something they might pursue in the future are right to look for answers – and advisers must be there to give them the facts.
We should be telling customers that equity release is here to stay and ensure customers are confident that they will still be able to access their housing wealth via lifetime mortgages or lending in retirement regardless of whether we are in or out of the EU.
The lifetime mortgage market has been consistently growing over the last few years, and record numbers of customers have been tapping into their housing wealth this year. But with more potential customers looking into releasing equity as a possibility, the advice community must re-double its efforts in portraying the lifetime mortgage as the safe, well-regulated and innovative product it has become.
New customers should take solace in the fact that more lenders are looking to join this ever-improving market but what advisers must not do is facilitate panic decisions. The increase in enquiries is positive however advisers must remember that this changes nothing. Equity release is clearly the best option for a percentage of people, but our advice must still be based on case-by-case evidence.
However, If thousands more people do begin to look into equity release seriously, which I think is a certainty as our industry grows and more products are offered, where appropriate advisers should be prepared to say, ‘I’m sorry, it’s just not right for you’ clearly laying out the reasons why this might be the case.
To maintain and grow the reputation of the equity release industry – something we must all continue to fight for – the importance of other options is still critical. This isn’t an equity release versus everything else battle – we have to present our clients with a holistic view of their options.
Often, downsizing will be the better option. Sometimes, looking into the mainstream mortgage market is a possibility. Considering family support, or just reducing simple expenses can help people achieve their retirement goals. But, if these options do not appeal to the client or are simply impossible, equity release can provide a much needed lifeline.
Ultimately, no matter how many people begin to consider the lifetime mortgage, our advice should remain unaffected by outside influence. Even if lending doubles or triples in value, and thousands upon thousands start considering the equity in their home as the best way to fund retirement, our advice must remain tailored to each individual client thereby maintaining a very hard won high level of customer satisfaction industry wide.
