Equity release has demonstrated its resilience even as the country has
faced multiple crisis while building in more consumer protections says
Jane Mullan, national field sales manager at Pure Retirement in this
interview with Octo Members.
The interview gives an analysis of the equity release market before a
wider debate involving the Equity Release Council and Equity Release Associates TO BE PUBLISHED MID NOVEMBER
Mullan says that currently there is a little less borrowing as
interest rates have increased, but she believes the long-term
prospects remain bright as demand increases and the now regulated
market continues to make improvements to its products and services.
The need is certainly there. Equity release has always been a solution
for the asset rich and cash poor and that is, if anything, becoming a
more significant driver given the current situation regarding the cost
of living.
She also believes there has been a shift in perception among both
advisers and intermediaries regarding the market with regulation and
lots of important work done by the governing body Equity Release
Council.
In terms of client needs, she says equity release can for example help
when an interest only mortgage coming to an end, it could be a matter
of helping children with house deposit, which can help with IHT
mitigation as while many people reaching retirement want to do a lot
more than just sitting back and relaxing.
Looking at the market more generally, she adds: “It is a far cry from
being a last resort and a fantastic solution, not just for individuals
but also for families as well. There is a fundamental shift in
perceptions, which mean that later life products and advice and client
education need to keep evolving as well, so we can continue to be part
of the holistic advice conversation.”