Dean Mirfin, Business Development Director of Key Retirement Solutions, highlighted that currently one third of people engaging in equity release plans did so directly through product providers. He said that people are initially drawn towards the perceived reliability of brand awareness combined with the common belief that purchasing the product direct from the provider will offer a better rate, although this is not always true.
“Consumer perception of the equity release market is that it is very risky,” said Mirfin, “the largest concerns for consumers are that they may face negative equity, that their home is at risk or that the products are too complicated. Although the equity release market is on the rise it is still a relatively small market.”
Mirfin said “One of the biggest problems that the market faces is that the access to advice is limited. Local and national press need to offer clearer information. Most customers qualify for equity release but are still very apprehensive”.
