"Equity release advisers seem comfortable with the Equity Release Council’s temporary relaxation on the rules around face-to-face advice"
The Council has temporarily removed the requirement for equity release customers to receive face-to-face legal advice during the Covid-19 pandemic.
The Virtual Roadshow, launched as part of Financial Reporter’s new digital events calendar, saw the popular roadshow format reimagined as a virtual meeting room to comply with current social distancing needs - with leading later life lending providers on hand to educate and inform delegates.
Speakers from Key Partnerships, Pure Retirement, Buckinghamshire Building Society and Hodge Lifetime explored a range of topics, from the changing needs of those looking for equity release to how best to market to an increasingly digitally-engaged over-50s demographic.
During the event, attendees were asked to answer a series of questions about how they perceive the changes in the later life advice sector, and how this might affect how they do business in future.
39% said they would definitely use remote or virtual methods to offer advice, while a further 50% said they would consider it if they find a solution they are comfortable with. Just 11% said they would not use virtual methods to give advice.
Turning to equity release rates, which recently fell to a new record low, advisers were split on how rates would evolve during the next 12 months. The vast majority (71%) expect rates to stay stable over the next year. 18% expect rates to increase and 12% expect rates to fall further.
Rozi Jones, editor of Financial Reporter, said: “As they say, necessity is the mother of invention, and every part of our industry is having to adapt to current working conditions as a result of Covid-19. Keeping our industry lending and advising is key to ensuring consumers can access much-needed finance. It’s encouraging, then, that equity release advisers seem comfortable with the Equity Release Council’s temporary relaxation on the rules around face-to-face advice, as it means that consumers can still receive the same level of service during this lockdown period.
“While it remains to be seen what will happen after lockdown is lifted, our speakers at yesterday’s event were all confident that the innovation happening in the equity release sector - albeit designed mostly to keep the sector going during a difficult time - can only be a positive thing for the space going forward, and the record low rates we are seeing are further proof that this is the space to watch in the next few years.”
Hattie Tales, national account manager at Pure Retirement and speaker at the Virtual Roadshow event, added: “These events are vital in today’s climate to keep advisers fully up to date with market changes and information, and simply to allow brokers and lenders to connect. It’s important to keep educating and helping brokers to make the most of lockdown by giving them the tools to grow their business.”
Julie Hanif, intermediary relationship manager at Buckinghamshire Building Society, who also spoke, said:
“Buckinghamshire Building Society was delighted to take part in Financial Reporter’s virtual roadshow. We operate solely through intermediaries and during recent weeks in particular, have recognised the importance of keeping our business partners and adviser community in touch and updated on changes to lending which are happening on a regular basis.
"It was good to have the opportunity to reassure brokers we are here to support them, helping their customers through financial difficulty during COVID-19 or talking about how the society has adapted to working from home and starting to use AVMs to replace physical valuations.”
