A lot has been written about lifetime mortgages and equity release products - some of it positive, some of it not.
Whatever your view, the reality is lifetime mortgages are here to stay – at least as long as people need more money in their retirement than they previously thought.
Research conducted by Prudential confirms this as findings suggest 44% of over-55 year-olds are considering equity release to supplement their pensions.
When the Pru launched its flexible lifetime mortgage, it was designed with its customers in mind. All its customer research was used to design a simple, effective and (most importantly) flexible solution to pensioners’ income requirements.
The Pru realises it is not always a straightforward product for financial advisers to sell. But there’s no getting away from the fact lifetime mortgages are going to become a mainstream product for many people approaching retirement in the coming decades.
With the market for equity release mortgage products set to explode from £1.2bn in 2003 to £6.9bn in 2008*, financial advisers who haven’t engaged in this market yet should seriously review their plans. Or the business opportunity could become a threat.
* source: Datamonitor 2004IFAonline
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