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Flexible ER advice is paramount

The severe slump in the pound’s value is a sign of downward pressure affecting interest rates.

If they fall further, it is possible that equity release rates will also decrease, although the two do not necessarily go hand-in-hand.

If equity release rates fall, flexibility will be the key to securing future growth in the market and must form an important part of advice.

The current state of the housing market is also affecting clients, with falling prices unnecessarily deterring them from equity release.

Yet such deals are now safer than ever before following the sector’s regulation and the guarantees offered by Safe Home Income Plans.

IFAs must ensure they inform clients of redemption penalties if their policies are moved.

As circumstances change, it is important such penalties are as transparent as possible so that clients are aware of what their initial choices could lead to in the future. After all, age is no barrier to life-changing events.

Equity release relationships can be easily created through mainstream leads.

But there’s plenty of potential for clients’ personal and financial circumstances to change so the need for flexible advice remains paramount.

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