The research revealed almost 2,000 of its IFA members now list lifetime mortgages as an area of specialism within their business. This number has increased month on month almost constantly for the last two years and as more people start to explore ways to supplement their pensions, this trend is likely to continue.
In the last year there has been a huge increase in the number of IFAs who have been awarded incremental qualifications/designations in lifetime mortgage advice. To give advice on lifetime mortgages, IFAs must have a relevant qualification, such as CF7. There has been a huge rise in popularity of these specialist qualifications (over 90 per cent increase in those holding a qualification in 2006) as more and more IFAs realise that consumers are considering these products and want independent advice first.
Equity release is now consistently one of the top ten most popular product areas that consumers are searching for on Unbiased.co.uk. In the last year alone, over 13,000 people used the search criteria to find a local IFA who genuinely offers advice on lifetime mortgages.
In fact, according to the latest figures from SHIP, the total value of new business written in Q3 2006 was £295.1 million, an increase of 12.3 per cent on Q2 2006 (£262.8 million). Year on year, the number of new cases being written has also risen strongly, from 6,446 in Q3 2005 to 6,954 in the latest figures - an increase of 7.9 per cent.
Karen Barrett of IFA Promotion commented: “In the winter months many older people have to address factors influencing their home such as heating and electricity which may result in having to review their financial situation. The possibility of releasing equity in their home could well be on the agenda along with other elements of retirement planning.
“Lifetime mortgages can be complicated. Therefore to help consumers understand the different options available, Unbiased.co.uk is offering consumers a free guide to equity release and urging them to speak to an independent financial adviser before they make a decision on what products are best suited to their circumstances. By ticking the appropriate criteria on Unbiased.co.uk consumers you can find local IFAs who genuinely focus on this advice area and who hold the appropriate qualifications.”
