Reversing the stigma of home reversion

It's no secret that equity release is getting on its feet again. Although the figures have yet to reach pre-credit crunch levels, new advances pierced the £200 million barrier in Q.3 2011. But this success isn't shared in the market as a whole. Drawdown lifetime mortgages account for 61% (£126 million) of sales, while home reversion schemes are a minnow, taking 2% (£5m) of market share. So why is this veteran of the equity release market, the underdog? Firstly, many people are spooked by the home reversion plan's USP. Bower Retirement Services adviser Simon Chalk explains: "If you sim...