Equity Release is a dynamic and ever-evolving market, with equity release products becoming a popular solution for clients in later life who are seeking peace of mind and flexibility. It’s no surprise that more and more advisers see lifetime mortgages as part of a holistic financial planning process, helping their clients achieve their financial objectives.

With increasing numbers of thoughtfully designed and flexible product options available, equity release is fast becoming a mainstream area of advice.

Our new study supports this argument – the majority of financial advisers (61%) we spoke to believe that it is likely equity release will become a mainstream product within five to 10 years. We also discovered that some of the most common reasons clients took out equity release were to:

• supplement their retirement income (63%)
• provide financial support for loved ones (32%)
• home improvements (26%)
• pay-off debt (25%).

However, despite the rise of popularity, more than two-thirds of advisers (70%) told us they find it challenging when advising clients on lifetime mortgages. The main barrier is deciding whether equity release is suited to their clients’ needs (26%), followed by having to explain the complexity of the product (21%).

Supporting advisers every step of the way is where we at LV= can really add value by providing expert case consulting and working in partnership with financial advisers. As responsible lenders we recognise the importance of helping advisers to help their clients understand today’s equity release options and dispel any misconceptions/misunderstandings. Nearly half of advisers (48%) had clients who think they will end up owing more than their home is worth, whilst another 46% say clients are often worried that equity release will leave them unable to pass their house on their family.

What’s more, 55% of clients were worried about how equity release will impact the future ownership of their home, while one in three (32%) are concerned that it will lead to them taking on more debt. That’s why it’s crucial for advisers to choose trusted and respected lenders, who will support them and their clients along the way to ensure a clear, smooth and supported journey.

However despite these concerns, equity release can be life-changing for people who wouldn’t want to downsize or leave their property due to the emotional connection they have with their family home. Taking out a lifetime mortgage can help your clients achieve their financial objective without putting them under any pressure. We know clients in later life are always looking for additional comfort and equity release can provide the extra level of security for their retirement.

For more information, visit LV.com/EquityRelease or contact our LV= team on 0800 028 8974 (option 1) or email us on equityrelease.sales@lv.com

This article has been written by Chris Smyth, LV= Equity Release Business Development Manager

*Survey: Opinium Research on behalf of LV= conducted online interviews with 206 IFAs between 28^th June – 3^rd July