MIp20-21_1209:MI 2008 24/11/2009 16:34 Page 4
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Equity release news
Equity release advisers still confident
Hodge Lifetime has revealed its concern when advising on equity main catalyst for increasing the are several forms of product
latest figures which show that release products. growth of the equity release innovation which could help.
IFAs advising on equity release While recent events have done sector was deemed to be positive, Thirty-seven per cent think that
remain confident about the little to shake advisers' confidence, improved media coverage for the an increase in products with no
sector, despite the recent IFAs still believe that much can be sector (21%). redemption penalties would be
withdrawal of some lenders and done to increase the potential for Unlike findings in the summer, beneficial and 31% think that
advisers from the market. the sector. When asked to list their only 58% of IFAs this autumn increasing loan to value would
Of those surveyed, 83% of continued concerns, 19% stated believe that equity release rates also increase the demand. A
advisers said these withdrawals that negative reputation portrayed will increase marginally over the growing number of IFAs also
have not affected their confidence in the media remains a worry. next three months (79% summer supported an alternative option
and neither has the earlier This has been consistently ranked 09). However, when looking of partial interest repayment
Which? report - with only 4% of as the top IFA concern over the towards the future, and loans so that dependents can
advisers stating that Which? past year. increasing demand for equity repay some of the loan to reduce
mystery shopping exercises are a Endorsing this concern, the release, advisers believe that there the amount of interest roll up.
Power of Attorney crucial part of advice
Considering the potential need and their discussions with family such as dementia expected to capacity prior to taking out
for a Lasting Power of Attorney members has become ever soar, such considerations, equity release, to ensure all
from the outset is important in increasingly important. through discussions with family parties are thoroughly informed
equity release planning, Recent ERSA research members have become more of the situation and of possible
according to ERSA. conducted amongst consumers important when committing to a future occurrences.
With 700,000 people living revealed that 54% of UK adults life plan. "It is also important that
with dementia in the UK, a figure aged 35 to 64 have not discussed Claire Barker, chairman of financial advisers broach the
estimated to soar to over one what would happen to financial ERSA commented: "As the topic of drawing up a Lasting
million by 2015, and on average responsibility should an older number of people with Power of Attorney with their
8,000 Power of Attorney family member lose mental degenerative diseases rises, it is client, at the same time as
applications made each month, capacity. However, with life all the more important for clients advising on equity release plans,
the importance of assessing a expectancy increasing and the to discuss with family members to avoid a difficult situation if the
client's changing circumstances number of degenerative diseases the potential of a loss of mental client later loses mental capacity."
Government did not go Prudential Equity Release
far enough chooses TrigoldCrystal
SHIP believes the Government and the Government's new TrigoldCrystal and Prudential advisers with an end to end
did not go far enough in its initiative would only help a have joined forces for a new system which bases product
pledge to help 400,000 people fraction of these people. The equity release sourcing selection on personal
who need long-term care. Government needs to consider system. requirements not just cost,
Commenting on November’s alternative care funding Intermediaries will be able to and allows direct, online
Queen’s speech, Andrea Rozario, solutions. search, sort and apply for submission of applications.
director general of SHIP, said: "It "There is currently £907 billion Prudential's range of lifetime David Aylmer, marketing
is encouraging that the tied up in retirees' housing mortgage products via director at TrigoldCrystal
Government recognises the equity - money which could be TrigoldCrystal's new Equity said: "Prudential is one of
importance of keeping elderly used by older people to ensure Release sourcing system released the biggest names in the
and disabled people in their own that they stay in their homes. To in December. financial market and its
homes, with their Personal Care support this, The Conservative The TrigoldCrystal Equity lifetime mortgage provides
at Home Bill. However, their Shadow Minister for Pensions Release system allows clients with control and
pledge to help 400,000 people has this week announced that if intermediaries to source flexibility. Their lifetime product
simply will not go far enough. elected, the Conservatives would and select Equity Release comes with a lump sum, or
"A recent survey from the be happy to consider the use of products using a 'benefits increasing cash reserve option
Department of Health showed equity release as a legitimate driven' sourcing engine. and brokers can use the
that half of men and two-thirds retirement funding vehicle. We Starting with a client lifestyle TrigoldCrystal system to see
of women will need long term urge all parties to take this questionnaire, the Equity which is most suitable for their
care at some point in their lives, stance." Release advice system provides client.”
December 2009 Mortgage Introducer
www.mortgageintroducer.com
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