News & press releases
Hodge Lifetime forecasts a robust future for the equity release sector as latest research* demonstrates the critical role IFAs play in helping clients find peace of mind.
While the equity release market contracted during 2009 following product provider withdrawal, property price decline and funding difficulties, clients’ perception of products improved; with 48% of Hodge Lifetime customers at the end of 2009 choosing equity release predominantly for the peace of mind it offers (32%- Q4 08).
As equity release in 2010 becomes more than just a form of financial security and a means for a comfortable existence, the role of advice remains key. Among customers surveyed at the end of Q4 2009, advisers accounted for 40% of all equity release introductions, a year on year increase of 8%, (Q4 2008: 32%) and the information provided was ranked of higher importance than amount of fees payable when making eventual plan choices (40% -Q4 09, 30% Q4 08).
Changing views of intermediaries
The sentiment of IFAs has also shifted as we enter 2010. Research trends from the Hodge Lifetime’s IFA Confidence Report** show that concerns of negative media coverage and potential confusion with sale and rent back have diminished during 2009 (negative media coverage concern– 65% Q1 09, 19% Q4 09) (sale and rent back confusion concern- 52% Q1 09, 14% Q4 09), signalling hope for increasing numbers of equity release advisers going forward.
Jon King, Managing Director of Hodge Lifetime, commented;
“There is no denying that the equity release market has taken its fair share of blows during 2009 and the withdrawal of large product providers has altered choice for customers. However, the importance of advice will never be removed and must remain the keystone for the industry going forward.
“Equity release awareness has grown and appreciation of its benefits is becoming more widely accepted by customers and the media alike. However, if this is to continue, advisers who are yet to explore this arena should make 2010 the year they choose to do so.”
* Hodge Lifetime Quarterly Customer Questionnaire: Q4 2009 (44 respondents)
** The Hodge Lifetime IFA Confidence Report is a quarterly report looking at the concerns/perceptions and issues expressed by IFAs operating within the equity release industry. The report uses survey data from over 30 independent IFAs from across the UK.
79% of advisers still confident despite the withdrawal of some lenders and advisers from the market. Read more...
As large providers leave the market, the importance of the IFA has never been more apparent Read more...
Hodge Lifetime, the UK’s longest established equity release provider, today announces a change to its equity release product offering which will support equity release customers in 2010. Read more...
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