More Independent Advisers Getting Involved With Equity Release Loans
The equity release loan market has had a fairly bad run over the course of the past twelve months or so, as many individuals have been reluctant to take out this type of loan due to falling property prices and several large banks and building societies have withdrawn from the market altogether due to lack of funding for the loans.
But as retired people are starting to return to equity release, there is a growing demand for independent financial advice to help them through the minefield of choosing whether such a loan is the right option for them and then in selecting the most appropriate lender to meet their particular needs.
New research from Hodge Equity Release has shown that there is a growing number of Independent Financial Advisers (IFA’s) entering the equity release loan market and they accounted for around 40 per cent of all equity release loans completed over the last quarter of last year, showing an increase of 8 per cent on the same period the previous year.
Equity release loans have got themselves a bad name in the past and in some case have been confused with sale and rent back schemes, but since the introduction of SHIP (Safe Home Income Plans) their image is improving, with people having a better understanding of how equity release loans work and exactly what they are getting involved in.
Jon King of Hodge said “There is no denying that the equity release market has taken its fair share of blows during 2009 and the withdrawal of large product providers has altered choice for customers. however, the importance of advice will never be removed and must remain the keystone for the industry going forward.”
