Equity release can provide an ideal solution for borrowers in an
interest-only trap, but for many customers, fear of the unknown is
With massive inflation in house prices over the past twenty
years, this generation of retirees has a wealth of potential cash
sitting in their property. Equity release can help homeowners
overcome shrinking savings pots with access to funds tied up in
their home without the hassle of moving, and for interest-only
mortgage borrowers it can help pay off remaining capital on their
Interest-only presents a massive opportunity for brokers to
utilise and promote equity release as a sensible solution to clear
remaining debts. However, a lack of client knowledge about
releasing equity requires brokers to put in more time than with
other more orthodox solutions. This is necessary to ensure
customers have a thorough understanding of what equity release can
offer, and brokers must be proactive approach with their clients.
The reward for this hard work is the opening of new revenue
However, while interest-only is a big opportunity for the equity
release market, it's also a significant challenge. The sector needs
to encourage regulator and Government support, and dispel any
lingering myths about risk and reputation. Lenders can position
equity release alongside downsizing - an alternative that allows
them to keep their home, while giving them access to similar
quantities of cash. Expert advice and provision of information are
vital to this process.
Read all our roles and our responsibilities
- We will communicate in plain English, not legal jargon.
- Clients will receive fair and balanced reports in writing.
- Clients will receive a personal consultation with a suitably
qualified member of legal staff.