You are here: Home - News -

Crown targets younger retirees with new equity release plan

by:
  • 29/01/2002
  • 0
Falling interest rates have prompted demand for equity release products

The equity release market has another player, following the launch of Crown Equity Release, which differentiates itself from other providers by offering capital to 60-year-olds, as opposed to the regular age limit of 70.

Mark King, managing director of Crown Equity Release, said the company was initially founded in August 2001 with an aim of arranging three equity release cases a month. However, because demand has increased, the firm has been able to increase its target to 23 cases a month. He said: ‘Interest rates have been falling and people have not been getting the pension they expected, so there is a need for this type of product.’

King added that changing demographic factors are also likely to increase demand as there are now more individuals with no direct ascendants.

However, King believes that equity release is an area where IFAs would benefit from more education. ‘IFAs need to be more aware of the product. The main argument is that retired people want to leave their children something. There is also the stigma that children will miss out on their inheritance,’ he said.

King said that many people use equity release to improve their basic standard of living, rather than for essentials.

He said: ‘Our clients will be aspirational and will use the lump sum they obtain through our scheme to top up their savings, reduce potential inheritance tax liability or improve the quality of their lives by taking, for example, a luxury holiday, buying a new car or improving their homes. It’s a question of enabling people to enjoy life when they have the time to.’

Crown offers equity release on properties at both ends of the market and does not have an upper limit on property values. It will also consider converted flats, properties owned by a third party, those occupied by more than two people and occupants in poor health.


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Survey shows South East house prices suffering

Volatile conditions in the South East were the focus of The Royal Institution of Chartered Surveyors...

Close