Dean Mirfin of Key Retirement told the audience at Wednesday’s Financial Services Expo (FSE) Wales that brokers must tell their customers they provide equity release advice if they’re to take advantage of a growing market.
Mirfin (pictured) urged advisers to start spreading the message about their ability to offer equity release, even if they were referring cases on to a specialist. “Advisers have to say that they do equity release,” he said, “because there are a growing number of consumers out there who are looking for advisers who do it. Even if you simply refer the case on.”
He also highlighted the various problems that equity release is now finding a solution for, in particular, Key Retirement had seen an increase in the number of customers using products to pay off their interest-only mortgage before maturity. Mirfin was however critical of some lenders who were not sign-posting advice options for potential equity release clients.
“Unfortunately, lenders are not sign-posting other solutions for interest-only later life customers, especially those who they’ve not been able to help,” he said. “It’s appalling that lenders who can’t help these customers are not providing information on where they should go for advice.”
Other reasons for using equity release were highlighted such as paying off other debt such as credit cards, using it for day-to-day living, going on holiday, home improvement, and treating or helping family members.
Mirfin and Adam Carnall of Age Partnership both highlighted the significant growth in equity release business which has been written over the last few years. Carnall said that 2017’s figures were expected to come in at £2.8bn, which would be a 26% year-on-year increase, while Mirfin said the market should be hitting £10bn by 2020.
