Home improvement agencies to trial equity release advice service

More than 240 case workers from 48 home improvement agencies have received dedicated training from Just Retirement that will allow them to help those people who could potentially benefit from releasing equity held in their properties to help fund essential home repairs and adaptations.

During the six month pilot, clients who want to know more about equity release will be introduced to Just Retirement Solutions Limited, specialists in providing advice on equity release based on a restricted panel.

Just Retirement has created a special equity release product for Foundations to better reflect many of its clients' financial restrictions and ongoing requirements. To maximise affordability, the Foundations plan has lower fees than standard and the option to add fees to the loan, plus a £700 cashback.

Andy Chaplin, director of Foundations, said:

"This is a really positive development, not just for home improvement agencies and the clients they support but also vulnerable and older homeowners more generally."

Stephen Lowe, director of Just Retirement, said:

"The number of older people is rising quickly and there are increasing numbers who own their own homes but are struggling with their day to day finances. At a time when Government funding is being squeezed, the result is people are unable to carry out essential home repairs and adaptations.

"We were keen to engage with Foundations because we firmly believe that where people have few other choices, equity release has the potential to transform vulnerable people's lives, making it possible for them to continue to live more comfortably in their own homes.

"In many cases these people will have exhausted all their other options and there will be no other funding available. This project makes sure those considering equity release receive high quality professional advice and clearly understand their options.

"They will be encouraged to have a relative, friend or case worker involved and there will be no obligation to proceed."

Most home improvement agencies are local not-for-profit organisations that assist homeowners and private sector tenants who are older, disabled or on a low income to repair, maintain, improve or adapt their homes.

They deal with more than 200,000 enquiries each year, providing advice on work required, reputable tradespeople and information about the financial help that is available.

 Stephen Lowe continues:

"If the pilot is successful we are hoping it will be rolled out to all 200 home improvement agencies across the country,".

"Equity release is moving into the mainstream as a financial solution. It is no longer just used for people to treat themselves but increasingly as a way for people to top up their retirement income due to lower annuity rates and for those struggling to overcome significant hardship."

Andy Chaplin added:

"We have been struck by the way in which Just Retirement has looked, listened and taken on board feedback from the HIA sector to help shape changes to their products and the advice that is part of the new service we are going to be helping customers access.

"Just Retirement recognise that these are not snap decisions. We also welcome the increased choice this will provide for vulnerable homeowners at a time when more conventional funding sources have been curtailed and may be for some time to come."