MortgagesJun 22 2016

Equity release advice firm reveals plans to expand

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Equity release advice firm reveals plans to expand

Bower Retirement Services has recorded 60 per cent growth to May this year, on the previous 12 months.

The equity release advice firm reported a 27 per cent increase in the numbers of advisers it has in 2016, along with a 40 per cent increase in head office staff.

According to Bower, its new dedicated high net-worth equity release advice business encouraged the expansion.

Bower Private Clients launched in February this year.

Geoff Charles, chief executive of Bower, said further new services were planned, including a legal advice operation.

Mr Charles said: “The equity release market has changed massively since we launched Bower in 2006 and is now shifting towards becoming more about retirement lending.

“Our tenth anniversary is the ideal time to look back at how far we’ve come, from just two people in an office in Ongar, to now more than 80 members of staff and advisers across the country.”

Ian Gwinnell, director at Birmingham and Stafford-based All Counties Financial, said Bower’s success was largely due to changes in pension regulation and legislation.

“We’ve found the 14 months very profitable,” he stated. “We’ve had a lot more enquiries from the aged 50 bracket onwards; all of this has been brought about by (pension freedom) flexibility rules coming in.

“This buzz area of the last 14 months will probably be shortlived, because if a new government comes in, the rules may change even further.

“Initial enquiries were in large numbers, but they are diminishing as each month passes.”

Yesterday (21 June) FTAdviser reported Leeds Building Society’s chief executive complained of the many technical hurdles around existing advice models that are preventing traditional lenders entering the lifetime mortgage market.

Peter Hill, who is also the Council of Mortgage Lenders’ chairman, explained these stem from differences between the regulatory structures surrounding investment, pension and mortgage advice.

ruth.gillbe@ft.com