Like every other segment of the UK population, older people are facing rising living costs. They are witnessing energy and grocery bills going up each month and many must also think about saving towards the cost of care at the end of their lives.
In the past, a common solution would have been to sell their homes and move to ones that are smaller – and therefore less expensive to maintain. That still happens, but moving costs, as well as issues such as stamp duty, are putting some people off the idea of selling up.
The reduced numbers of retired people downsizing do not necessarily mean that equity release enquiries will dry up though. In fact, the opposite seems more likely, and it is something that could be a valuable revenue stream for mortgage advisors. It is possible for older homeowners to access part of the total value of their home without the need to actually leave it or sell the property first.
That is an option that we can expect to see more and more people choosing to make use of, especially if retirees are hit with a bigger tax burden following the election. It is a way to deal with financial pressures in the here and now without the problems that come with trying to sell a home and move.
The best way for a mortgage advisor to prepare is to follow up their CeMAP training course by studying for the CeRER qualification. That is the one needed to offer equity release guidance.
