Article date: 11 October 2004
Norwich Union research has highlightedIFAs’ attitudes to the equity release market.
The research shows that 70% of IFAs whoregularly write equity release business expect the market to keepon growing. More than a quarter (27%) say lower returns frominvestments and pensions will fuel the market while 27% say risinghouse prices will boost demand.
Increasing numbers of people affected byinheritance tax are likely to increase demand and 10% of advisersexpect equity release to become more popular for inheritance taxplanning. Another 10% expect it will be used by customers simplytrying to make ends meet.
Some 38% of IFAs surveyed believe publicawareness and confidence in the market is vital to increasing theamount of equity release business they write. Nearly all financialadvisers (92%) back government plans to regulate home reversionschemes.
Mark Kelly, director of Norwich Union PersonalFinance Ltd, said: "We expect that the equity release market willcontinue to grow as people look at different ways to maintain theirlifestyle in retirement. Public confidence in equity release iscrucial to the growth of the sector and that is why Norwich Unionhas lobbied consistently for the FSA to regulate lifetime mortgagesand reversion plans."
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Noties to editors
Figuresfrom Norwich Union survey of 200 IFAs. 200 CATI interviews wereconducted with IFA business writers selected via the Matrixdatabase. Each interview took on average 12 - 15 minutes tocomplete. Interviewing was spread across the 3 months as follows:May - 63 interviews, June - 68 interviews, July - 69interviews.
Norwich Union is the market leading equityrelease provider with a market share of 41% (source Safe HomeIncome Plans Q2 2004).
Norwich Union’s equity release plans arelifetime mortgages secured on your home. CHECK THAT THIS MORTGAGEWILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOUWANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT, SEEKINDEPENDENT ADVICE.
Minimum property values apply.
Full written terms and conditions are available on request. Thisis a lifetime mortgage. To understand the features and risks, askfor a personalised illustration.
- Norwich Union is the UK's largest insurer. It is the UK'slargest provider of life, pensions and investment products andone of the leading IFA providers. IFAs provide around 75% of thecompany's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco PersonalFinance and The Royal Bank of Scotland Group. Norwich Union'snews releases and a selection of images are available fromAviva's internet press centre at www.aviva.com/media