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Innovation within equity release

ended 07. December 2022

This week we've seen one equity release provider, More2Life, offer sub-6% rates, which is great. But we're keen to know what equity release providers could do to innovate beyond just lowering rates. Think of this as an equity release broker whiteboard that we will then drop into the media for all equity release lenders to see. Where could improvements be made within equity release? Is there anything lenders aren't doing, in your opinion, that they should or could be doing? Any other ideas you have for the equity release sector, jot them down. 

4 responses from the Newspage community

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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
A lifetime mortgage products that acts like an offset mortgage would be great. Clients often need to borrow money but also want the flexibility to pay it back without ERCs, and to re-borrow if needed.
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Pat Bunton
Mortgage Practioner & Industry Expert at LiveMore & Langley House
A long overdue product innovation would be for income drawdown products to be guaranteed, not subject to lender approval for each drawdown. Unless or until this happens they should not be sold as income drawdown, as it is aspirational, not a right. Another would be a move away from complex mark to market Early Repayment Charges - hopefully FCA Consumer Duty requirements on firms will see improvements in both of these areas. The big question is will industry go there voluntarily, or will it wait for regulatory interventions?
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Dan Osman
Head of Later Life Lending (Age 55+) at UK Moneyman
Based on the wish-lists from clients I have spoken to over the years, the two main features/enhancement I would like to see are: 1) Flexible (Offset?) Drawdown where clients would be able to have an agreed reserve facility which they could draw from and pay back into to be able to draw on again - i.e. with a constant credit limit. 2) An option for shorter ERC periods possibly in exchange for an increased % rate per year off the ERC term.
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Paul Neal
Mortgages & Equity Release Advisor at First Choice Financial Services
There are some great features already such as a Key Features Document secures a rate, but shorter early repayment periods would go along way to helping securing clients and more flexibility when it comes to valuations. There is. I thing more frustrating in having to re quote a client if the valuation comes back different.