Broker firm Mortgage Advice Centre is to launch an equity release division, believing the sector is set to boom.
The nationwide firm, which has over 30 advisers, says equity release could become a big market as ever-more people fail to secure pension provisions. MAC says it aims to have its equity release department up and running before regulation kicks in.
Michael Loughran, branch manager at MAC's Leicester office, says: “We have had lots of enquiries from people who have no pension provision and want advice on equity release. With the first-time buyer market practically dead, equity release is the marketplace of the future – especially with people living longer.”
He adds: “To make sure the advice given is accurate and carried out in the proper manner we will only use specialist intermediaries. We do not think equity release will be the next mis-selling scandal. Normally it is the offspring who complain because they are left fewer assets by their parents.”
Mark King, managing director of Putney-based Crown Equity Release, says: “Undoubtedly equity release will grow but people should look at reversionary plans as they offer more protection when house prices fall.”