Dean Mirfin, business development director, Key Retirement Solutions comments on the report:
“Key Retirement Solutions welcome this announcement which we view as a positive step in the process of achieving full FSA regulation for Home Reversion plans. We look forward to further consultation on how this new regulation could be enacted in smooth and timely manner which complements existing mortgage regulation.
“Home Reversion products currently account for only a small percentage of equity release plans sold (Q3 2004 – 176 home reversion plans were sold vs. 7030 lifetime mortgages*) but with the widening perception that the housing market has reached its peak, their relative attraction is likely to increase.
“With this potential growth in 2005 and to build consumer confidence in the industry, we urge the government to implement these changes quickly in order to bring the entire equity release industry under one regulatory regime”
