Borrowers still unaware of later life products: FRVR

The Virtual Roadshow, launched as part of Financial Reporter’s new digital events calendar, saw the popular roadshow format reimagined as a virtual meeting room to comply with current social distancing needs - with leading later life lending lending providers on hand to educate and inform delegates.

Speakers from four later life lenders and providers explored a range of topics, including how to market to a changing 55+ audience and the various products available to later life borrowers.

During the two Later Life Lending Virtual Roadshows held this week for the North West and Yorkshire & Humberside, over 50 attendees were asked whether they thought consumers were aware of the various types of later life products, such as retirement interest-only or lifetime mortgages, and the differences between them.

100% of respondents said consumers are not aware of the different products and their uses.

Attendees were then asked what resources would be useful for potential later life borrowers looking to understand the different types of product available.

67% said a conversation with an adviser is the best source of information, on par with better news coverage of the types of later life lending in mainstream money media (67%).

44% said materials made available from lenders (downloadable packs, flyers etc) for use at the point of advice would be useful, while 33% would like to see more educational resources from trade bodies, such as a YouTube series.

22% thought more advertising from later life lenders via TV and radio would help to increase understanding.

Amy Loddington, communications director at Barcadia Media, said: “It’s clear from our survey that advisers are aware of the shortfalls in their clients’ knowledge of later life products, but they can’t tackle this issue alone. Advisers are perfectly placed to explain the different product types and to find the best solution for their clients, but they also want the help of news outlets, advertising and trade bodies to help increase education amongst the wider population.

“Covid-19 has sparked a rise in over-55s considering new borrowing options, so now is the perfect time to help explain the benefits of later life products and help to combat any stereotypes that might remain about equity release.

“We hope that by connecting advisers with later life providers during our Virtual Roadshows, they can grow their knowledge and understanding of the sector even further to help their clients during the Covid-19 period and beyond.”

Hattie Tales, national account manager at Pure Retirement, commented: "These virtual events have been vital especially during a national lockdown. To be able to engage with a varied audience and connect with new advisors is so valuable to us.

"We always get a positive outcome from presenting at these events and it’s great to share our updates.

"But most importantly offering engagement and education to brokers during these unusual times is proving to be really effective."