In its first report, looking at the predictions, concerns and perceptions of IFAs already advising on equity release, Hodge discovered increased interest in equity release among consumers was becoming more evident. However, all IFAs expressed concern that there was still not enough being done to highlight the strength and security of the equity release market within the present economic climate.
Further findings also revealed the growing importance of understanding the intricacies of redemption penalties when advising on equity release plans. 100% of IFAs surveyed ranked this as the number one priority for advice, rating it higher in a scale of importance than advice regarding interest rates or charges (both 95%).
Further key highlights from the report:
• 70% expect to see at least a 5% increase in their equity release business over the next three months.
• 100% had advised on drawdown schemes in the last three months.
• 75% are apprehensive about the negative reputation of products within the media.
Jon King, managing director of Hodge Equity Release, commented: “While this report only takes a sample of IFAs across the country, the upturn in demand for equity release expressed by those surveyed is encouraging and signals strong potential for the market going forward. It is also good to see the importance IFAs direct towards redemption penalties when advising clients. This is an area which will become even more important as people desire greater flexibility in their equity release plans if and when their circumstances change.”
