A State Street survey of nearly 10,000 people indicated that only 6% of workers would be able to afford the lifestyle they want during their retirement.
But why compromise on your lifestyle, when retirement is all about enjoyment, building memories with your loved ones, experiencing the holiday of a lifetime and simply having the peace of mind that everything is taken care of?
Predictions suggest that the equity release market will grow by a further 40% by 2020, which is no surprise, given the benefits people see in this solution as a reliable source of income in their later life.
Equity release was once perceived as a fairly restrictive product, however increasingly advisers are using it as an effective tool to boost a client’s retirement income. Unlocking capital from retirees’ homes is an effective strategy advisers can use in conjunction with other products. To help enhance clients’ finances, lifetime mortgages allow them to release tax-free cash without having to move from their existing home.
Some of the main reasons advisers choose Equity Release:
• Some products allow their clients to either release a one-off cash lump sum or a series of smaller lump sums to meet their individual needs.
• Roll-up mortgage products are where there are no compulsory monthly repayments and the borrowed amount, including the interest, is repaid when the property is sold.
• Some products allow clients to take an initial loan with an agreed amount ‘in reserve’, which they can take whenever they need. These type of products can also guarantee that this reserve will be there for 15 years from the date the mortgage is completed.
• Some products require a no-negative equity guarantee, so clients can never owe more than their home is worth.
This article has been written by Chris Smyth, Equity Release Business Development Manager at LV=
Mortgage brokers may find themselves managing a team of other brokers. Let's find out how you can deliver success and drive your team to the very best they can be.
Brokers can help guide their clients with the necessary finances in order to secure the property they want. Here are 5 key options to help investors at auction.
Landlords want mortgage brokers who are experts in Buy-to-Let mortgages. Attract their business by showing them you have in-depth knowledge of the rental market.
The equity release sector is undergoing huge growth but in order to sustain this, lenders need to innovate and adapt in line with consumer trends.
With so many homeowners looking to take on home improvement projects, we take a look at how to keep on top of the current market activity.
The 'Income Roulette' research highlights financial worries, concerns and attitudes, particularly those belonging to the 'Sandwich Generation'.
Dedicating resource to online marketing can be difficult for brokers. Here are four areas which you can focus on without having to spend a lot of time or money.
Attracting new customers is more expensive than keeping them, so it makes good sense to invest in a good retention process. Here are some simple tips to help brokers grow their business.
Economic uncertainty may call for fixed interest rates, but a good adviser, whilst acknowledging the economic climate, should always be aware of their client's needs and sometimes variable rates are actually the cheapest option.
Income protection policies designed especially for medical professionals. As these are the people we look towards to help us get better we often forget they can also fall ill or have accidents that could stop them from earning.
The product transfer/retention sector represents a big opportunity for advisers. New online tools can help ensure applications are submitted simply and swiftly, but lenders need to work harmoniously with intermediary partners and client retention should be at the top of any intermediary firm's agenda.
When a child becomes sick, financial matters should be a parent's last worry. For financial advisers, this can be a difficult conversation to have, but protection providers have worked on creating more comprehensive products that cover a range of conditions.