Dean Mirfin, business development director for Key Retirement Solutions, stated that 2008 would be the year that home reversion came into its own, but added that much of its growth, and that of equity release would be dependent on how the housing market performs over the coming year.
Mirfin said: “In a pessimistic climate, home reversion is the more popular option. Advisers need to be advising on both options, not just one. To restrict what you can offer a client doesn’t make any sense. We know there are a lot of brokers that have never sold a home reversion.”
He added that it made sense to take the home reversion exam, as equity release advisers were obliged by the regulator to discuss all options with a client anyway – even if they were not qualified to arrange a home reversion plan.
The regulator will require advisers to have a home reversion qualification by April 2009, yet advisers will most likely be forced into it a year early with Safe Home Income Plans’ requirement of the qualification beginning from April 2008.
KRS’ equity release market monitor also showed that the proportion of lifetime mortgage plans fell in 2007 from 69 to 43 per cent year-on-year as the demand for reversion schemes and drawdown increased.
Jon King, managing director of Hodge Equity Release, said: “Now is a good time for home reversion. How much someone gets is related to the worth of the house and so it is likely to become more popular.”
Try your luck in our latest quiz
get the daily news delivered to your inbox
find the latest industry jobs
