MortgagesAug 1 2016

More 2 Life calls for more advisers as market share rises

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More 2 Life calls for more advisers as market share rises

More 2 Life has grown its adviser market share to 15 per cent in the second quarter this year, retaining its position as the third largest lender in the UK by volume of sales.

In the same period last year, the equity release lender had a market share of just 7 per cent.

During the second quarter of 2016, the firm broke its own total lending records, after a period of sustained period of growth that also saw the launch of new products and an online portal.

The latest quarterly lending figures from the Equity Release Council showed wider market lending passed the £500m mark in the second quarter. It was the first quarter on record to reach that level and meant the three busiest quarters for equity release have all come in the last 12 months.

Lending via drawdown remained the most popular way for pensioners to take lifetime mortgages, growing 31 per cent to £304m in Q2 compared to the same quarter in 2015. However, lump sum releases showed the biggest year-on-year growth, with a 37 per cent (£56.8m) increase from £152.1m in Q2 2015 to £208.8m this year.

Dave Harris, managing director of More 2 Life, said he was predicting a record breaking year for the market, with over £2bn of wealth being unlocked.

“We are confident that we will continue on this stream of growth for the remainder of 2016 and we truly do believe we are on the cusp of something quite remarkable in the equity release market,” he stated.

“The market is evolving quickly and will only continue to go from strength to strength as more lenders and funders come into the market.”

With that in mind, Mr Harris called on more advisers to make unlocking equity part of their client retirement planning discussions.

“Whether they are going to be advising on equity release themselves or handing referrals to specialist equity release advisers, all retirement options need to be fully considered in order to produce the best financial outcome for clients,” he commented.

Andrea Rozario, chief corporate officer at equity release adviser Bower Retirement Services, said the growth in lump sum lending highlights how homeowners with more valuable properties are recognising they can enhance retirement planning and underlines the need for specialist advice for wealthier clients.

“Advice is central to the growth of the equity release market emphasising the need to recruit more advisers across the industry to support the demand for expert independent advice for the growing number of clients needing help on retirement lending options,” she added.

peter.walker@ft.com