Mark King, managing director of Crown Equity Release, said advisers who got involved in the market would increase their business and revenue, and be able to give best advice. Under current regulations, advisers can opt to advise on just lifetime products, home reversion or both.
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King pointed out there was a significant potential market, as 30 per cent of people have no direct descendents to inherit their assets, and stated his belief home reversion gave people greater security than other equity release products.
King said: “Brokers who do the equity release exams could do business with associated IFAs and increase their business. There is a real hesitancy to do more exams, but brokers are missing a trick as there is a lot more commission in home reversions than mortgages. Young advisers say they only deal with those of the same age, but they have access to all those peoples’ parents as clients too.”
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Dean Mirfin, business development manager for Key Retirement Solutions, said: “There are clearly circumstances where home reversion is more suitable, but the overriding question is suitability. Advisers can opt out of one sector or the other, but there is an element in the rules that requires advisers to consider whether the other sector is more suitable. That is a real issue – are advisers fully investigating the options?”
