In reality, downsizing is equity release by another name and one that is being used by clients of all ages.
The question for our industry is whether this financial asset and transaction is considered as part of the everyday advice process or whether the industry is being driven by attraction to a product’s benefits rather than property as a financial asset concept.
Many people approaching retirement find themselves in large houses that were bought to raise a family in. In the current market many of these properties are proving difficult to sell, at least at prices close to the estimated value in the client’s mind.
For these customers there is a great opportunity to discuss releasing cash to help finance retirement. Safe Home Income Plans insists all products are portable without penalty so when the market recovers borrowers can take their scheme with them as they downsize.
With 28% more individuals reaching retirement this year than last year and an amazing 179,000 more people hitting state pension age this year, the potential is clear.