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Equity release news Equity release news
IFAs must go
Equity release helping car scheme
online for
equity release
New research from Key Retirement equity release to purchase a new vehicle scrappage scheme is
Solutions shows that 10 per cent of car to increase further as more new proving beneficial not only to
equity release customers who enquiries are coming from younger, but also to older,
IFAs specialising in equity release released equity between January customers quoting that the households. For those who do not
should ensure they establish and and May of this year have used scrappage scheme has motivated have the capital or income
maintain an online presence. This equity release to buy a new car. them to buy a car now rather than available to support a new car
follows research from Equity For the month of May, when the later. purchase, many see this
Release Solicitors’ Alliance (ERSA) scrappage scheme officially The average amount being opportunity as too good to miss,
which found that 35 per cent of launched, the percentage signing released to purchase a new vehicle and so are looking to equity release
equity release customers shopped up for a new equity release scheme is £8,710. Key predicts that as the solution. The further
for their product online. who were buying a new car was 16 approximately 25,000 equity increased interest that we are
Results taken from a survey of per cent. Many releasing equity release plans will be taken out seeing from those aged 60 and over
equity release customers found that from their homes have multiple during 2009 which means that, since the scheme launched should
35 per cent used the internet when reasons for doing so, just one of based on the current trend, almost no doubt result in more uptake
shopping around for their equity which may be to purchase a new £22 million will be released to from this age group. The over 60s
release product. This came second car; home improvement, holidays purchase a new car. will clearly be playing an
only to taking equity release out on and repaying debt feature amongst Dean Mirfin, Key Retirement important part in helping fuel the
the back of seeing an advert (37 per the many uses. Solutions group director, said: motor industry during 2009 and
cent), highlighting the increasing Key expects the number using "Purchasing a new car under the beyond."
popularity of the internet amongst
the older generation, where the
average age of an equity release
client is 69. Of the other
SMS adds Equity Advice.co.uk to panel
respondents, 21 per cent said that
they had a financial adviser already Solent Mortgage Services (SMS), asset to our brokers. Equity progress throughout the process.
and 7 per cent searched for a the lending products and financial Advice.co.uk have a good record, a Clients will benefit from advice
product following word of mouth services provider, has added equity whole of market approach and provided face to face or over the
recommendations. release to its growing stable of clients referred to them will phone, chosen by them, as well as
IFAs should also ensure that services to intermediaries with the receive the best care before, during a free initial consultation and low
providing correct and up-to-date addition to its panel of Equity and after the transaction. We look client charges.
advice to potential equity release Advice.co.uk. forward to working with Equity Stuart Wilson of Equity
customers is paramount, especially Chief Executive Officer at SMS, Advice.co.uk . Advice.co.uk said, “We are
with the emergence of websites that Ian Balfour, commented “We have Intermediaries will be able to delighted to be working with SMS
claim to offer access to equity recognised for a while that equity refer clients to Equity Advice.co.uk and their introducers. We share a
release advisers, solicitors and release business could be a , who will be responsible for all the common purpose in providing the
providers but do not distinguish valuable market for our advice given. Comprehensive no best advice along with the best
whether these firms solely specialise intermediaries and being able to cross sell agreements come as part products. Introducers from SMS
in equity release or whether they call on the expertise of Equity of the package and introducers will be impressed with our
are members of ERSA. Therefore Advice.co.uk will be a tremendous will be kept fully up to date with service.”
IFAs must ensure that the
information they pass to clients is
both accurate and relevant.
Claire Barker, chairman at ERSA,
Pink adds Just Retirement to equity
commented: “With high numbers
of equity release customers opting
release panel
to use the internet to source
suitable products, the need for IFAs Equity Release authorised per cent of UK pensioners having intermediaries have a choice for
to increase or establish their own intermediaries of Pink Home to rely on savings or share-based their clients who may find
online presence is absolutely Loans can now get access to nine investment to help fund day-to- themselves in this situation.”
paramount. The importance of equity release providers, following day living expenses (Source: The David Cooper, marketing and
providing accurate advice and the addition of Just Retirement to National Pensioners Convention) distribution director of Just
choice to clients is also heightened its panel. this means that thousands of Retirement, commented: “This is
following the discovery of websites Neil Hoare, sales and marketing pensioners are contemplating how very good news. As a company,
that do not always provide all of the director at Pink Home Loans they will be able to survive Just Retirement is keen to work
information that clients need to commented: “According to Safe without up to a third of their with organisations promoting
make an informed decision. IFAs Income Plans (SHIP), more than 8 income.” high quality advice on equity
must ensure that their methods of million pensioners (Source: Office Hoare continued: “Equity release to people in retirement.
accessing information are current, of National Statistics) have seen release could be the solution that The attention to detail
and if they are advising on equity their monthly income fall by they are looking for to boost their demonstrated by Pink’s approach
release, IFAs should recommend almost 25 per cent from 12 income and the addition of Just is highly encouraging and we are
that customers seek advice from an months ago, due to the collapse of Retirement to Pink’s equity release very pleased to be included on the
independent, specialist solicitor.” the base rate. And with some 80 panel means that our Pink Equity Release Panel.”
July/August 2009 Mortgage Introducer www.mortgageintroducer.com
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