To aid understanding of how equity release can generate sufficient funds to repay an interest-only mortgage Bridgewater has published a sales aid ‘Just a thought’ for advisers to give to their professional introducers.
Chris Prior, manager of sales and distribution at Bridgewater Equity Release, said: “The motivation behind these sales aids is to help introducers recognise such situations so they are able to put older homeowners in need of assistance in touch with a specialist equity release adviser. It may not be the most suitable option in all instances but it is important that equity release is at least considered as a possibility.”
The aid includes the case study of a customer who bought a house using an interest-only mortgage but the loan wasn’t due to finish until she turned 90. After finding it difficult to make her monthly repayments and having concerns about how she would pay the capital back, she contacted an equity release adviser who was able to successfully arrange a home reversion plan.
Prior said: “Despite the fact that equity release can be used to generate funds for a number of different uses many introducers are not particularly adept at identifying all the various scenarios where it may represent a solution.
“The motivation behind these sales aids is to help introducers recognise such situations so they are able to put older homeowners in need of assistance in touch with a specialist equity release adviser.”
Prior added: “It may not be the most suitable option in all instances but it is important that equity release is at least considered as a possibility.”
