Rozario said the industry’s biggest problem was still its reputational issue, a problem which many equity release lenders are addressing by using different terminology and ditching the traditional branding.
In May, More 2 Life said it was looking to shake off the ‘descriptors’ of equity release and lifetime mortgages and instead re-establish the brand as a solution offering a range of lending options for older borrowers.
Rozario said: “The biggest problem we still have in the industry is its reputational issue, and I think the whole industry needs to be rebranded to address this. Some brands have already started doing this but it will be a slow creep rather than a revolution, new terminology will be infiltrated over some time.
“This will be precipitated by the view and attitude of the baby boomer generation who are much more robust and savvy consumers. People are beginning to have a more rational understanding of equity release products so there is even more reason to take the step to rebrand.”
She added that it was a welcome move to have the addition of Legal & General to the market to rival Aviva, which has traditionally been the dominant force in equity release lending.
Legal & General’s interim results released this week showed that it completed lifetime mortgage advances worth £37m in the six months to 30 June 2015. L&G also doubled its original target to write £100m of lifetime mortgages in 2015, bringing the new total to £200m.
“We can’t have a model that relies so heavily on one firm,” Rozario said. “We need more economic stability within equity release in terms of lending models. The sector needs more products that can be distributed and sold to customers for their variety of needs.”
