Home reversion plans to become preferred option

Nationwide has predicted that the housing market will not recover until 2010.

Equity release brokers will need to ensure that their fact finding systems are sufficiently robust to cater for the new situation. In particular, a partial or full home reversion plan is likely to become the preferred option for those homeowners who have lost confidence in the residential property market, as the cost/benefit balance shifts away from lifetime mortgages.

Last year, the extension of regulation to home reversion plans led to a level playing field between equity release products from a regulatory perspective. An uncertain outlook for house prices should result in an equally level playing field in the actual selection between a home reversion plan and lifetime mortgage, which can only be good news for home reversion providers.