hodge lifetime ifa confidence index
One year on from it’s original publication The Hodge Lifetime IFA Confidence Index has just published it’s fifth quarterly report addressing the concerns, perceptions and issues facing Independent Financial Advisers (IFA) within the equity release industry.
The latest report shows that 75% of IFAs say that interest in equity release schemes has stayed steady or shown a slight increase over the last year.
All IFAs surveyed had total confidence in advising on equity release, while 30% felt that their confidence in advising on the product had considerably increased during the year.
Tailored Advice: The effect of equity release schemes upon state benefit entitlement remains the most important area of advice for advisers (33%), with charges and guaranteed drawdown facility ranking as the second and third most important areas (27% and 18% respectively). However, the emphasis placed on advice surrounding rates has declined over the past year.
Concerns: The negative reputation of the equity release sector portrayed by the media was the top concern harboured by IFAs (28%), and 23% still expressed their worry about the potential for equity release to be confused with sale and rent back schemes. These findings mirror those of Hodge Lifetime’s first Confidence Index from summer 2008, where both the media influence and sale and rent back confusion ranked first and second place. However, while the media portrayal remains the primary concern, fewer IFAs feel that this is the largest current problem facing equity release this year and there is now growing emphasis on unnecessary concern over falling house prices and the fear of FSA mystery shopping.
Looking ahead: With SHIP figures showing an increase in the number of plans sold in Q2 and a continued interest in the equity release market, Hodge Lifetime’s report also finds that advisers are in a strong position to take advantage of this. Looking ahead to the future, 30% of IFAs said that they planned to network more with local solicitors and mortgage advisers, 23% said they would make more use of direct marketing and 23% said they hoped to obtain referrals from existing clients as a means of increasing their equity release business in the coming year.
UK-Finance-News summary: The report shows that while IFAs have total confidence in the product, more needs to be done to instill confidence in the consumer, who is looking for a product supplied with total transparency and without future risk and complications.
2 comments so far
1 Ben Waugh // Jul 20, 2009 at 3:00 pm
Just wanted to say HI. I found your blog a few days ago on Technorati and have been reading it over the past few days.
2 Oliver Darraugh // Aug 7, 2009 at 5:22 am
When facing repossession by your lender it can be tempting to sell your home to the first buy and rent back company that you come across. However, in the past not all companies were found to be ethical and this has meant that those selling did not get the deal they thought they were getting. Thankfully from 1st July the industry will be regulated by the Financial Services Authority which should work out safer for those wishing to sell. So when selling to avoid repossession choose an fsa regulated rent back company.