Equity release advisers warned to consider longevity

Published: 06/07/2012

Bridgewater Equity Release is encouraging advisers to fully consider client longevity in their fact finds in order to provide a good quality of service.

The equity release provider has warned it is vital for the broker to understand the client’s life expectancy in order to recommend the most suitable product between a lifetime mortgage and home reversion plan.

Paul Barber, Director of Bridgewater Equity Release, offers these tips:

“Try to [ask them]: what you think your life expectancy might be? If they say I’m in very poor health, their life expectancy is shorter and the reversion isn’t suitable for them. The lifetime mortgage is more appropriate for them.

“But if they come from a family who’s always had great health and they’re going to the gym three times a week, they might want to think, I’m likely to be one of the ones who might live a lot longer. Should I choose the certainty of a reversion?

“What we’re trying to do is encourage the adviser to do a better job and to get the right plans for their [clients] by really considering all the risks with [them]. Recently the FSA expressed some concerns about advisers influencing customers and effectively recording the adviser’s attitude to risk in fact-finds. We’re keen on helping advisers by broadening their understanding of all the risks, so they are more confident to discuss [these] with their customers.”

Content correct at time of publication

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