Advisers should tackle common reverson misconceptions

Bridgewater believe many customers choose to overlook home reversion plans as an equity release solution even when the adviser believes a reversion to be the most suitable option for their client.

Advisers have outlined a number of customer misconceptions they regularly come across with regard to reversions covering issues such as how the ownership of the property will be affected, the products themselves and their value for money, how a property is valued, the portability of the reversion plan, and how the value of a property will be ascertained when a plan ends.

In order to help advisers answer such queries Bridgewater has produced a new sales aid called, ‘Common Discussion Points’.  The document answers some of the most commonly raised questions with regards to home reversion plans and seeks to help advisers reassure their customers that their preconceived ideas may not be factually correct.

All Bridgewater sales aids can be downloaded from the adviser resource centre on its website.

Peter Welch, Head of Sales and Distribution at Bridgewater Equity Release, commented:

“We are often told by advisers that for a number of their customers a home reversion plan is the product solution that best meets their needs particularly as reversions can help mitigate the risks associated with longevity and low house price inflation.  However many customers discount reversions based on a number of misconceptions about the products. 

"To tackle this potential problem we have produced a sales aid to help advisers reassure customers when having discussions about home reversions.  It also allows advisers to see the common questions that may be raised and how they can answer those queries. 

"This sales aid is the latest to be produced and should help advisers in their customer dealings when a reversion plan is the most suitable option and the subject of their recommendation.”