Equity release customers rely on adverts

17 August 2009

The trade body polled 425 equity release customers on the ways they choose their equity release plans.

It found that 32% of respondents base their decision on television and magazine adverts, compared to 19% who approach their financial adviser.

Only 7% relied on word of mouth recommendations when choosing their equity release product.

Some 61% said that they shopped around before committing to a product rather than approaching one financial adviser directly, with 19% spending between one and three months searching.

Claire Barker, chairman of ERSA, says that with the price of advertising in local newspapers coming down brokers may want to think about taking out an advert to boost equity release business.

She says: “With most equity release customers shopping around for an average of one to three months before making a decision, IFAs should ensure they consider all communication mediums available, in order to maximise exposure to the potential consumer.

“These include increasing their online presence, maybe through social media tools like Twitter, as well as looking at advertising costs.”

“Although a good reputation can lead to word of mouth recommendations this isn’t the most obvious method of finding a suitable product.”

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