Bridgewater Equity Release, the home reversion specialists, believes that 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 is urging advisors to address commonly raised questions with regards to home reversion plans in a bid to reassure their customers that their preconceived ideas may not be factually correct.
‘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,’ said Peter Welch, head of sales and distribution at Bridgewater Equity Release.
‘However many customers discount reversions based on a number of misconceptions about the products,’ he added.