With the first Air Later Life Lending Awards being launched at the British Motor Museum at a black tie event tonight, we asked some of our finalists for their views on the how to develop your business in this market, what 2023 holds and why awards are important for market development.
What do you think is the most important attribute when it comes to growing and developing your business in the Later Life Lending Market?
Stuart Powell, managing director at Ocean Equity Release and finalist in the Best Small Adviser Firm category said “The most important attribute to growing and developing our business in the current Later Life Lending market is growing consumer confidence which we do by maintaining a client-focused, transparent, and educational approach for our clients. We ensure that all processes are robust, efficient, with the legal progression of all cases tracked and monitored closely to promote efficient communication and effectively manage client expectations. An analysis of lead sources of leads is key to future success, the education and support of our introducers is invaluable so that are resourced to observe where Later Life Lending is potentially appropriate for clients.”
Les Pick, director of Manufacturing and Adviser Proposition, more2life which is shortlisted for best later life provider, said “Having worked as both an adviser and for lenders, I firmly believe that consistency is important when it comes to growing and developing your business in the later life lending market. Being consistently focused on good outcomes for customers while at the same time consistently looking to build your knowledge and your referral relationships is vital. This ‘back to basics’ approach is not glamorous but certainly pays off in the long run as customers and contacts will trust you far more than those who choose to dabble or change their focus if the market gets tough.”
Trust is the most important attribute according to John Harris who is a later life and protection adviser at Cooper Associates as well as one of our Best Newcomer Finalists. He goes on to say “The Equity Release industry is needed more than ever before, however the most common challenges advisers must overcome are; adverse news stories, poor consumer awareness and a lack of understanding of Later Life Lending. The potential market for Equity Release in the UK is huge and therefore trust is crucially important to help to build confidence and allow change. We apply behaviours that build trust, allowing our industry to continue to gain popularity, by educating clients on the benefits and the changes that have taken place over the years, including regulation and the introduction of the Equity Release Council.”
What do you think 2023 will be like for the Later Life Lending Market?
With so much going on in the later life lending market as well as the wider residential market, we asked some of our finalists to consider what next year may hold.
Nicola Firth founder and CEO at Knowledge Bank which was shortlisted in both Best Adviser Support and Training as well as Later Life Lending Innovation categories was upbeat, saying “I think Later Life lending will see continued growth in 2023 as customers evaluate their options. We find ourselves in an aging population, with inflation and the cost of living increasing, any savings, income and pension pots won’t stretch as far leading to more reliance on equity. The climate may influence more occupiers gifting equity to family in a bid to help them onto the property ladder following the Help to Buy closure. I also expect more lenders to enter the Later Life lending market as there becomes more traction with consumers.”
Jonathan Barrett, CEO of Comentis finalists in the Later Life Lending Innovation Category added “Looking at 2023 through a vulnerability lens (the only one we are really placed to look through), we feel it’s going to be a challenging year. Not only have we got Consumer Duty implementation (that will have a significant impact on all firms) but are also in a recession (well as near as d*mn it) and the cost of living is going to continue squeeze incomes, not least the older generations who need to stay warm and likely to have less energy efficient housing stock.”
Jon Dunckley from About Consulting and Chair of Air Academy as well as a finalist in the Best Adviser Support & Training category added “I think 2023 will be a very interesting year! With consumer duty coming alongside challenging market conditions, I think now is the time for the best to shine – and that applies equally to advisers and manufacturers. We might be settling in, at least for now, to a ‘new normal’ of higher interest rates, but there are still many clients who need what the sector offers. The key will be innovation in manufacturing, working hand-in-hand with quality advice, to deliver outstanding consumer outcomes. From an adviser perspective, a challenging market brings real opportunities to demonstrate added value, but its important to recognise it also makes it more important than ever to stay on top of professional development.”
Hema Patel, business development manager at Hodge and finalist in BDM of the year, suggested that “Despite the economic challenges faced by many customers, I believe the market will continue to grow. The industry has come a long way in understanding “older” borrowers and I think things can only get better. With a number of different products now available, from RIO through to Lifetime, the market is in a good place to meet those evolving needs. We’re finally seeing real movement away from brokers either operating in only Lifetime or Residential. And I’ve had more conversations with equity release advisors considering RIO in the last year than ever before – this can only be good for customer outcomes.”
What role do you think awards can play in raising market standards?
Finally with literally hours until we launch our first awards, we asked our finalists what they thought the role of these events were in raising standards.
Peter Barton from Barton Law who are finalists in the Best Legal Firm category felt awards set standard saying “Awards can play a pivotal environment for us all to learn and to see the excellent standards in our sector by recognising those true experts. The most important attribute to growing your market is communication at all levels, to clients, advisers and lenders and their solicitors. If everyone knows what is going on then a case will run smoothly and all parties will be happy and a top class service soon gets around. I think that the structure of cases will be different, more of a need culture rather than to fund holidays etc. Given the state of the economy I expect a busy year albeit one of higher interest rates and lower LTVs.”
Nicola Firth founder and CEO at Knowledge Bank which was shortlisted in both Best Adviser Support and Training as well as Later Life Lending Innovation categories said: “Awards can play a significant role with raising market standards as a driver and are a statement of excellence. They encourage individuals and businesses to do what they do well, incentivising the production of quality. With the ever-growing industry the competition becomes stronger and demand higher, pushing improvement in performance year on year. Awards act as a symbol encompassing a message of brilliance, elevating that person or brand to a prestige status within their field and can entice business as well as building confidence for consumers – why wouldn’t you want your name against that? A true accolade.”
Jade Barry is a senior business development manager at Equilaw and a finalist in the BDM of the Year category added “The awards are a great opportunity to recognise individuals within the industry, especially considering challenges we have seen this year. It’s also pleasing to see some different categories, such as those focussed on back-office support and adviser support and training. Our industry is unique, and we need a joined-up approach to ensure the client journey is as smooth as possible, and clients experience the best possible outcomes. I believe that knowledge is vital in achieving this, not only for advisers to understand the lending criteria and client requirements, but more than ever, a detailed understanding of the legal process is also crucial. From my experience, a well-prepared client certainly achieves quicker completions and confidence in the process.”
Newcomer of the year finalist, Julian Ward, later life specialist at HQ Mortgage & Finance said: “Customers, the industry and the economy, as a whole would benefit by generating a greater degree of confidence in financial services opportunities for all ages. Equity release is best served by having passionate well qualified advisers taking a holistic view of the needs of later life customers and providing ethical recommendations for individuals.
“The awards could encourage practitioners in providing this level of service by recognising the commitment of advisers from across the market. Customers could benefit from a higher level of personalised and well-presented advice and the reputation of the industry could be enhanced no end.”
Jacqueline Berry, director from My Care Consultant and finalist in the Best Later Life Online Support category concluded: “The delayed care reforms in our opinion provide a golden opportunity for advisers of all types to help shift the dial so that more and more people in vulnerable circumstances (almost everyone with a care need) see the profession as one they can turn to for help in this area, and importantly, as a safe pair of hands. The delayed care reforms and regulatory focus specifically in respect of vulnerability and consumer duty are for the first time combining in such a way that in our view makes the development and promotion of non-regulated and regulated care advice THE biggest opportunity for firms during 2023.”
Stuart Wilson is chair of Air Group
