More than half (55%) of advisers expect their equity release business to grow over the next three years, with 12% predicting substantial growth and 43% expecting modest growth.
According to the research from independent analysts AKG, nearly half (47%) of advisers said clients are receptive to how equity release can help them.
Nearly two out of three advisers (63%) said clients most value the ability to make capital repayments while 58% said clients are interested in being able to make interest payments.
The flexibility from drawdown products, which enable customers to manage their property wealth, is rated the most important by 68% of advisers while 72% said the no negative equity guarantee on plans is the most attractive.
The paper, sponsored by lender more2life, also reveals interest rates and product pricing are the main reason for selecting lenders, with 71% of advisers picking on price.
|Reasons advisers select equity release lenders|
|Range of solutions||54%|
|LTVs and financial strength||38%|
|(Source: AKV research on behalf of more2life)|
Around 54% select lenders on their range of solutions while 38% pick based on LTVs and financial strength and 32% on innovation.
Interviews by AKG found advisers would like to see more emphasis on educational efforts by providers, established best practice on compliance and sales processes and more consideration of issues around vulnerability and duress.
Matt Ward, communications director at AKG, said advisers see the ability to offer a wider range of services to clients, being able to help clients with issues they could not help with previously and the provision of an additional revenue stream for the adviser business as key primary benefits of offering equity release.
“A steady growth picture is predicted for equity release business, but the twin hurdles of historical perception of equity release and compliance concerns remain a deterrent to engagement for some advisers,” he warned. “All parties need to continue how best to consider and address potential issues around client vulnerability and duress.”