If the equity release market is to maintain its current levels of growth then it needs to focus more on retirement lending to maintain its strong growth, according to Bower Retirement Services.
46% of advisers questioned by Bower say offering more retirement lending solutions would help maintain the strong growth in the market.
Its quarterly Adviser Tracker Research found retirement lending is seen as more important than lobbying the government chosen by 31% and cutting rates chosen by 19% as the one thing which could boost the market.
Expansion of solutions offered by providers is highlighted by the most popular innovation advisers want to see with 31% calling for plans enabling mortgage customers to move from standard mortgages into equity release.
Part of that is being driven by rising enquiries from customers seeking solutions to their interest-only mortgages with 85% of advisers reporting an increase in clients asking about possible options in the past year.
Andrea Rozario, chief corporate officer at Bower Retirement Services, said: “Equity release is growing strongly as more retired homeowners become confident about using their property wealth to increase standards of living in retirement.
“But the industry does need to address the opportunities being offered by expansion with further innovation and that will mean looking at retirement lending more widely than simply the products available now.
“The past few years have seen the pace of innovation pick up but advisers want to see more products and specifically ones which address the interest only issue which enable mortgage customers to move seamlessly into equity release where suitable.”
One other potential growth area identified by advisers is the role of equity release in funding long-term care. Around 54% of advisers say they believe equity release is more suited to helping fund care in the home while 42% believe it can help fund care in general.
