Research by equity release lender more 2 life has revealed that nearly four fifths (77%) of advisers believe there should be more products launched to enable asset rich but cash poor clients to access property equity.
Equity release is being pushed into the mainstream by an ageing population that is asset-rich but cash-poor, low long-term interest rates and rising house prices. Equity release allows people to unlock wealth to help fund a more comfortable retirement.
In the past, though, people have been put off by the supposed high rates on equity release plans, with two fifths (40%) of advisers believing that a drop in rates to 5% or lower would have a major impact on demand for plans among clients.
The possible growth in this market is piquing the interest of advisers, with 32% of the opinion that the recently introduced pension freedoms will lead to a rise in the number of advisers taking qualifications in equity release advice.
“Advisers feel there is a need for them to get clued up on the equity release market as they recognise it will play a huge role in helping them advise their clients on the best options for retirement,” Dave Harris, CEO of more 2 life, explained.
“With equity release rates at their lowest in ten years and the long term trend for rates continuing to go down, we expect the market to continue to expand,” he continued. “We want to create new and innovative products that make equity release a proposition impossible to ignore, by driving down rates and offering flexibility and choice.”