In an interesting insight into buyer behavior on equity release products, the Equity Release Solicitors Alliance found that 32% of individuals surveyed choose the appropriate ER product based largely on adverts. While on the other hand, only 7% relied on word of mouth when investing in an equity release product. Certainly, in some ways this evidence is counter intuitive to conventional thought that more heed would be paid to an unbiased referral than corporate advertising.

In addition, the report revealed that the number of individuals shopping around for equity release products has fallen from 35% in April to 26% currently. With some 17% of those surveyed opting for a product within one month of their search. These figures suggest that a proportion of the population are making quick, but not always informed, decisions when it comes to equity release. The merits of shopping around cannot be underestimated as each provider will offer different packages some undoubtedly better than others. 

Shopping around and getting the best deal will become more important in years to come as equity release is set to grow exponentially on the back of an ageing Britain. According to research by Sovereign Reversions, by 2029 the number of pensioners is set to increase by 50%, reaching around 15 million people. This segment of the population are set to have accumulated huge equity is housing estimated at £1.5 trillion. The research suggests that a large proportion of this equity could be spent on equity release as a means to fund retirement rather then a pension.

So with more opportunity on the horizon for equity release and certainly a surge in providers and products in the marketplace, it becomes more important for individuals to make objective decisions when opting for this product.