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Releasing brokers’ earning potential

In the past few years many experts have tried to convince us simple folk that equity release is evil and that should we deem to glance in its direction it will turn our business empires to dust.

In some ways these warnings should not be taken lightly. Equity release has had years of bad press as a result of financially inept individuals doing the numbers.

And some in the sector are scared that the rascals selling sub-prime deals will turn to this new pot of gold and mess it up for everyone.

The truth is that equity release is no more complicated to administer but its clients may be less financially aware because of age or illness, so robust processes are vital.

That’s not to say we shouldn’t be looking at developing our client banks – just that we should use experienced professionals to do it.

Equity release is still a cottage industry with nuances that make it virtually impossible to understand without having spent some time working in the sector.

Before you rush out and take your exams consider the following – a client bank of 250 will yield six qualifying clients and the total market is about £1.8bn – about 1% of the total mortgage market.

Marketing is specialist, compliance difficult and training and permissions costs onerous.

My regular column will aim to help you integrate equity release into your business because even as a referrer you could generate substantial income.

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