The future looks bright for lifetime advice

New research from Mortgage Express, the specialist lender, has revealed that broker confidence in the lifetime sector is soaring, with 81% of brokers, who haven’t yet advised on lifetime, saying that they are planning to in the next year or further on into the future.

Despite the challenges of last few months, the lifetime market has remained buoyant with over a quarter of those surveyed either advising on lifetime within the last year (13%) or referring leads on (14%).

Credit crunch starts to bite

Many brokers have recognised the growth potential in this sector for some time. However, for some the credit crunch has been the instigating factor. Almost a quarter (22%) said the credit crunch was already impacting, or was likely to impact, on the way they do business and is directly influencing them to expand into offering lifetime advice.

Kirsty Jackson, head of lifetime mortgages at Mortgage Express, said: “Forward-looking brokers are beginning to realise that they shouldn't ignore this growing sector, particularly in light of the credit crunch which has encouraged many intermediaries to look at ways of expanding their offering to both new and existing customers.

"As brokers seek to develop their business in today's challenging environment, equity release provides them with an opportunity to extend into a market which is being driven by a baby boom generation many of whom fear they do not have adequate retirement provision. Lifetime mortgages allow customers to release money tied up in their property, without fear they may end up in negative equity. Be it to enhance their lifestyle, provide cash to meet basic living needs or to perhaps help their children onto the property ladder, lifetime mortgages provide solutions and opportunities for customers and intermediaries alike."