Industry campaigns successfully increasing awareness of equity release

Advisers at Financial Reporter’s Later Life Lending Roadshow last week were asked about the public knowledge of various options available to equity release clients.

A recent study by the Equity Release Council showed that drawdown is more popular than taking a lump sum, with 64% of new customers opting for a drawdown lifetime mortgage in the second half of 2018.

When asked by Insights if clients are more or less aware of the various options available, such as drawdown or lump sum, 42% said potential borrowers were more aware, and 50% said they had seen no change. Just 8% felt there was less understanding amongst the public.

Of those who felt their clients were more aware, two thirds cited advertising and industry campaigns as the biggest reason for equity release becoming more widely understood.

25% said that consumers are more likely to research a product themselves before speaking to an adviser than they were 12 months ago and 8% feel that word of mouth has had a positive impact on the understanding of equity release.

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Financial Reporter editor, Rozi Jones, said: “As demand for equity release continues to grow, it’s encouraging to see that the understanding of equity release is increasing amongst the general public.

“However advertising and industry campaigns can only go so far and advisers will continue to play a vital role in finding the right solution for later life borrowers.

“This is proven by the increasing popularity of our Later Life Lending Roadshows where advisers can network with equity release lenders, discuss new products and learn about new solutions for their clients.”