Dean Mirfin, group direct at KRS (pictured), told delegates at the Mortgage Business Expo that baby boomers hitting retirement will find their financial needs radically change and require advice to maintain their lifestyles.
Property renovation is currently the main reason 59% of borrowers seek equity release and he suggested that “the future of equity release” lies in providing for care in the home.
Mirfin said that many brokers are targeting people for equity release in the mistaken assumption that it is most often used for Inheritance Tax purposes, which make up just 1% of equity release cases.
Mirfin said: “Lifestyle drives expectations of retirement. It’s about aligning yourself alongside these social aspects.
“The future of equity release lies in care in the home. There is a huge drive to providing care in the home, but the downside is that people can’t sell their house to pay for it.”
He added: “Don’t ignore where the population is going, because over the coming years these are the customers that you will be dealing with.”
However, Mirfin cautioned brokers against losing focus on their core business, advising that building up their equity release business should be a gradual process that could be delivered by referring cases to a specialist.
