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Less than quarter of advisers mention equity release to clients over 55 – More 2 Life

  • 14/02/2020
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Less than quarter of advisers mention equity release to clients over 55 – More 2 Life
Just 23 per cent of mortgage advisers routinely mention equity release to their clients who are aged 55 and over, research by AKG commissioned by More 2 Life has found.


The research paper, House of the Rising Sum – Exploring equity release opportunities, was carried out via an online survey during Q3 2019 and 102 advisers both in and outside of the equity release sector responded. 

Some 21 per cent of respondents said they mentioned it as an option in all discussions with clients, while 24 per cent discussed how property wealth could be used more generally to see what their clients would say. 

Of the respondents, 43 per cent said they mentioned equity release if they identified that a client had a need or aspiration for it. 

Despite not always mentioning it, 47 per cent of respondents said they already offered an equity release advice solution in-house and 17 per cent deliver advice via referral services. 

Some 19 per cent said they did not plan to offer equity release over the next year while 11 per cent said they had no immediate plans but were considering the best approach. 


Advantages of equity release offering 

The report showed that 67 per cent of advisers surveyed believed being able to offer a wider range of services to clients was the main advantage of advising on equity release, while 42 per cent said the additional revenue stream was a primary benefit.  

Furthermore, 46 per cent said equity release allowed them to help customers they would not ordinarily been able to support. 


Growth forecast 

Of those who do offer equity release, 55 per cent of advisers expect business to grow over the next three years with 12 per cent predicting substantial growth while 43 per cent expect modest growth.  

Matt Ward, communications director at AKG, said: “The purpose of the paper is to provide practical and educational output which encourages further discussion and debate about the evolving role of equity release in the UK retirement and later life markets.  

“A steady growth picture is predicted for equity release business, but the twin hurdles of historical perception of equity release and compliance concerns remain a deterrent to engagement for some advisers. All parties need to continue how best to consider and address potential issues around client vulnerability and duress.” 


Supporting advisers 

Alongside the release of the report, More 2 Life has launched a manifesto aiming to support advisers with their later life lending cases through technology, product breadth and adviser-focused support. 

This includes the development of its online portal Fastpath and its recently launched lending criteria tool which narrows down its product offerings depending on the information entered by a broker. 

The lender has also enhanced its front and back office support to provide new marketing support and training for advisers, as well as education and market insights.

Dave Harris (pictured), CEO at More 2 Life, said: “We were delighted to sponsor this extremely valuable paper which highlights not only where the market needs to innovate and develop but also how we need to clearly communicate our offerings and the support that we already provide for the adviser community.” 

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