he rise in house prices in recent years has become an all too frequent feature of today’s news bulletins. Depending on when properties were purchased, the majority of homes have risen in value. Many people have far more capital in their home than they do in any other investments or savings – hence the phrase, ‘asset rich, cash poor’. The problem, of course, is that homeowners cannot simply spend this money – it cannot be accessed unless they sell their home or release the cash in some way. Equity Release/Lifetime mortgages give homeowners the opportunity to make the money in their homes work for them, either by giving them a cash lump sum or a regular income. However, this topic has generated many column inches over the past few months. Whilst attitudes towards inheritance are rapidly changing, consumers appear to have mixed views about equity release.
Providers of these products understand the concerns of the consumers and are investing more and more time and money into training intermediaries to ensure that they give the best advice to their customers. To someone unfamiliar with the equity release market, it is easy to be daunted by the sheer number of different products available and the varying levels of flexibility they offer. It is therefore paramount that advisers have all the information available at their fingertips when briefing their clients, particularly in light of the recent publication of final rulings on the statutory regulation of home reversion plans, not to mention the ongoing criticism of equity release schemes from some consumer groups.
However, thanks to providers’ efforts to increase consumer confidence in their products, equity release is becoming an increasingly popular option. As a result, the expansion of the equity release market is creating career opportunities for candidates in the mortgage arena. It is thought that the equity release market is worth approximately £1.4bn a year, with an estimated £800m of this deriving from sales through intermediaries. At Envision, we believe that now is the ideal time to work in partnership with providers and other organizations in this rapidly expanding market. A perfect example of this was the recent opportunity that arose at Stonehaven, a new equity release product provider, which attracted a great deal of attention from prospective candidates. The successful candidate, Orna Moses, adds:
What attracted me to work for Stonehaven was the edge it has over its competitors, by allowing consumers to release their capital sooner than the majority of other providers. As a new and innovative company, there is a great deal of scope for growth, both for the business and for my own personal development as Sales Support Manager. I am looking forward to developing my organisational and administrational skills in this new field to become a key member of the sales team.”
Before long, intermediaries looking to share in this success will require more experienced staff with a deeper understanding of the market to aid their growth. Envision has already witnessed firsthand this rise in demand for candidates from both providers and intermediaries alike: a demand that encompasses sales, brand and product development, as well as administration and support roles. Retirement Plus is one such organisation that has recently expanded their sales team with two new recruits. Fred Paton, head of sales, says:
As the demand for equity release continues to grow, so too does our commitment to fulfilling it, as our decision to expand the sales team demonstrates. Retirement Plus transformed the equity release market with the launch of its Property Plan product last year. It differs from competitor products by offering to buy a share in the property at full market value with no upfront discounting, giving customers the option of a protected share, either for eventual inclusion in their estate, or for future advance. Also, unlike other products, it allows clients a wide range of flexible lifestyle options.”
Given the lengths to which equity release product providers are going to address consumer concerns, as well as the increasing uncertainties surrounding government pension income, it comes as no surprise that there is growing interest in schemes to release capital from property. As this trend develops, it will in turn provide a number of exciting job opportunities, all the more exciting for specialist recruitment companies such as Envision, who are constantly in touch with the professionals in this market.
