60 seconds with...Stephen Lowe
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STEPHEN LOWE, GROUP DIRECTOR OF EXTERNAL AFFAIRS, JUST RETIREMENT
Just Retirement recently reported that equity release advances increased by 22% in 2010. Why was this?
In the past year we have broadened our distribution and made our equity release service available to some of the UK’s most popular consumer brands, such as Saga.
Who do you expect to turn to equity release in the next 10 years?
We will see increasing numbers of consumers looking to use equity release to top up their retirement income. Those seeking to finance long-term care needs will turn to it, as will customers looking to bridge the mortgage repayment gap created by under-performing investment contracts such as endowment plans.
Do you expect more providers to re-enter the market in 2012?
I hope so because competition is good for customers.
What needs to be done to grow the market further?
Increased distribution from IFAs and brokers would help as well as from well-known consumer brands.
Andrew Dilnot’s proposals on developing funding solutions for long-term care, if implemented by the government, will create significant opportunities for equity release-type solutions.
How much do you think the equity release market will be worth in five years?
I never make predictions as they come back to haunt you. A lot will depend on how the government responds to Dilnot’s proposals and whether equity release will be a solution to rescue customers who have endowment shortfalls to repay their mortgages. It is possible for the market to be double its current value in five years’ time.
What would you do if you were chancellor for the day?
Ensure the UK gets a fair outcome in the European Solvency II debate.
Who would you like to play yourself in a film and why?
Comedian James Corden because he is a funny guy.
What is the best bit of advice you have ever been given?
There is always a way.
What is your favourite film and why?
Currently it would be The Inbetweeners, but mainly because if my teenage children read this it might give me some street cred.
What book are you reading?
Lance Armstrong: It’s Not About The Bike.
Interview by Natalie Thomas
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