"There are far more opportunities than concerns or challenges in the market at present."
FR: What are Pure Retirement’s main aims or focuses in in 2019? Do you have any exciting news or plans you can tell us about?
2018 really was a breakout year for us, with new products hitting the market and a wealth of awards, and we want to use that as a springboard for another great year going forward.
Late last year we moved into a fantastic new space which gives us room to grow, both literally and figuratively, and we want to build on last year’s momentum to develop new products while also expanding on our current offering (such as our recently-launched Sovereign suite) to further embed ourselves in the minds of advisers and their choices.
FR: Pure Retirement recently launched a new flexible equity release range – how does it stand out in the market and how do you see products evolving further in the near future?
The sovereign range is designed to open up equity release to even more people than ever. We’re currently seeing £11m being released in property equity on a daily basis and the first half of the year saw over 38,000 households making the most of the opportunities that later life lending has to offer, and as the market grows we’re being faced with an ever more diverse range of priorities and needs.
Sovereign aims to address that through a flexible approach to both personal circumstance (via ERC-free and fee-free options, as well as downsizing, porting and long-term care provisions) and an open approach to acceptable properties, including removing limited LTVs on flats, maisonettes and ex-local authority houses.
FR: You also enhanced your adviser support team – what opportunities and challenges are currently facing advisers?
I think that from an adviser perspective there are far more opportunities than concerns or challenges in the market at present. As a market we’ve recently passed the milestone of lending over £1bn in a single quarter, and later life lending has grown in both legitimacy and popularity recently (and in the past year especially).
For some people, however, equity release will still have the stigma and bad reputation that it gained in the 80s through substandard products and questionable business practices. Thankfully the market has moved on and consumers are better protected than they’ve ever been, but advisers might need to indulge in a bit of mythbusting to fully convince some people – but that in itself presents an opportunity.
Similarly some people view it as a last resort for those in financial strife, but again it presents a unique opportunity to reshape perceptions and remind people that later life lending is a tool to allow them to live their later years the way that they want to.
FR: How can equity release be better integrated into retirement planning and what tips would you give to advisers operating in this space?
The good news is that it already is, to an extent – the government has recently recommended that older people get signposted towards later life lending as a viable option as part of their wider strategy for a single financial guidance body. Nonetheless, it’s important that advisers joining and operating in this market make the most of the support and resources available.
The Equity Release Council have a wealth of materials available, including the Adviser Guide To Equity Release (which was developed in conjunction with Pure Retirement). Additionally, many mortgage clubs and lenders offer their own webinars and roadshows to help boost adviser knowledge – it’s something we’ve committed to at Pure Retirement, and we’ve further developed our strategy to include bespoke marketing support to help advisers better target their customers. The resources are there, but advisers need to ensure they’re making the most of them if they’re to make progress in this ever-growing sector.
FR: If you could see one headline about the retirement market in 2019, what would it be?
I’d like to see equity release continue to be recognised as a retirement planning tool, with a special focus on the way that it has become a mainstream solution for those both entering and already in retirement.
