Independent advice drives equity release, KRS

Independent advice and specialist market knowledge are the “biggest drivers” for customers’ picking equity release, data from Key Retirement Solutions showed.

Analysis among more than 2,000 equity release customers found independent advice and specialist knowledge of the market were the main reasons why homeowners selected a particular company.

Key Retirement Solutions’ analysis showed 47 per cent selected “independent advice” and “specialists in equity release” compared with just 15 per cent who selected “best return on the value of my home” when asked why they chose their adviser.

“Widest choice of plans” was selected by 24 per cent while “company’s reputation” was picked by 25 per cent, the study showed.

Dean Mirfin, group director of KRS, said: “Growth in the equity release market is being driven by independent specialist advice as increased innovation such as the use of drawdown means it is crucial that all customers are helped through the process.

“Customers are clearly concerned about maximising the return on their home but place a higher value on advice and the reassurance that their adviser is a specialist.”

Key Retirement’s market monitor showed total funds released in 2011 rose 5.4 per cent to £959.6m – the first rise in four years – while plan sales continued the growth seen in 2010 with a 1.6 per cent rise to 22,366 in 2011

Once untapped drawdown funds – which have yet to be released - are added in total lending rose to more than £1.3bon underlining how innovation through increasing use of drawdown has transformed equity release, KRS said.