The equity release market will be driven by children encouraging their parents to release the value being held in their properties.
Speaking at Mortgage Solution’s latest Power Hour, Rob Clifford managing director of mortgageforce, said: ‘The influence of children is important ‘ 16% of our equity release work is as a result of children recommending their parents look at the scheme. I think that is a very significant influence. We are seeing a high number of applicants as a result of children explicitly recommending it to parents.’
Liberal Democrat spokesman on trade and industry, Dr Vincent Cable MP, also present, said the equity release market still had a lot of work to do to convince customers of its merits.
He said: ‘Most people we are talking about are frightened, conservative in their financial habits and deeply suspicious of the financial services industry.’
As such the role of the younger generation is set to become increasingly important.
n For full coverage of the equity release Power Hour go to page 30.