MortgagesFeb 9 2016

Bower launches high net-worth equity release service

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Bower launches high net-worth equity release service

Bower Retirement has launched what it claims to be the first high net-worth equity release service, in response to strong demand for targeted advice as property wealth becomes more important to retirement planning.

According the firm’s analysis, which looked at Land Registry data from 2010 to 2015, there were more than 36,000 properties worth over £1m bought without mortgages in England and Wales in the past five years, with more than 85 per cent of those deals in London and the South East.

The new brand, Bower Private Clients, has recruited specialist advisers from private banks, with the aim of creating individual terms to help it deliver personalised equity release solutions for customers in London and the South East.

It is working with private banks, accountants and law firms to be referred complex cases, including customers facing interest-only issues, as well as clients wanting to gift substantial amounts to family for house purchases.

Specialist underwriting is often needed for high net-worth clients as more expensive properties can be problematic and many need specialist surveys and innovative solutions, noted a statement from the new company.

Senior executives believe the growth in property wealth is dramatically changing the equity release market, while pensions and investments remain under pressure.

Andrea Rozario, chief corporate officer at Bower Private Clients, said the expansion is being driven by clients and their wider range of advisers including private banks, lawyers, accountants and wealth managers, who recognise that property wealth can offer a variety of solutions.

She said: “Homeowners increasingly have more wealth tied up in their properties – our analysis shows that around £63bn has been spent buying £1m-plus homes without the need for a mortgage in the past five years – and want to be able to access that wealth as part of retirement planning.

“Launching Bower Private Clients is the next logical step to provide a service focused on retirement lending for high net worth clients and we are already seeing strong demand from clients and introducers.”

ruth.gillbe@ft.com