Why it's never been a better time for unlocking your clients' financial potential

Although we may have to wait a little longer before we completely unlock from the final restrictions, consumers are feeling a sense of freedom and optimism about the future. The recent stamp duty holiday has certainly contributed to this, helping people to get onto, or climb, the property ladder during the pandemic. However, as the temporary stamp duty holiday begins to wind back from 1st July, with the new nil band rate being limited to £250,000, you may have already seen business volumes dipping from their pandemic peak.

In addition to focusing on getting onto the property ladder, the lockdown may have been a time of reflection for your clients to prioritise other aspects which are important to them, including getting finances in order and managing debt, especially those nearing or have reached retirement age.

In the first quarter of 2021, the surge in house prices has helped older homeowners release more equity from their homes. Lending is up 13%* compared to Q1 last year with £1.07 billion* released alone during this period. In fact, Key’s latest Market Monitor shows that the average loan amount is up an incredible 25% year-on-year to £103,710* boosted by the rise in house values.

It is significant for advisers to understand how older homeowners could be putting their property wealth to good use for themselves and also to support their family. Interestingly, over a fifth of all equity released in Q1 2021 was used for gifting from the bank of Mum and Dad (or Grandma and Grandpa) to help loved ones climb the property ladder, with an average of £56,917* given towards house deposits.

Property purchases using equity release have also seen an increase of 365% in the first quarter this year with customers using equity release to enhance their buying power as they look to move to a property which is more suited to their lifestyle and retirement aspirations. While downsizing typically means moving to a smaller property in older age, this does not necessarily mean a less expensive one if it is in a particularly desirable area.

Consumers also have more choice and flexibility than ever before to meet a wide variety of needs. With over 500* plans available, getting the right advice from a specialist in this field is critical to help ensure the right outcome for your client.

Mortgage and wealth advisers can easily take advantage of this growing market by referring to Key Partnerships. Key Partnerships provide a robust referral offer that enables advisers to broaden their proposition to include equity release without the need for you to advise or take on the compliance responsibility. We enable advisers to promote equity release to their clients, provide CII accredited webinars, as well as hands on support from our dedicated account managers alongside a direct adviser to adviser relationship. For every case that completes you’ll benefit from an average referral payment of £1,766**, and we keep you posted every step of the way.

Advisers may not immediately think of equity release when planning how to turn their clients’ priorities into reality, but this could be the solution to help your clients unlock the potential in their homes whilst helping to grow your business beyond the stamp duty holiday.

To find out more contact one of our account managers today on 0800 138 1663 or visit www.KeyPartnerships.co.uk