The Equity Release Specialist This promotion is directed at FCA authorised firms and intermediaries only. Not approved for customer use. The Equity Release Specialist

The growth sector for the next decade • 7.6 million eligible candidates¹. • Only 45% of people save adequately for retirement². • £807bn of housing wealth for pensioners³. • Average UK house price doubled since 2000⁴. • First Baby Boomer retired in 2012⁵. Equity release can provide capital for any purpose without strict affordability criteria and repayment commitments.

The Retirement Market The UK’s population of over 65’s is set to double to 19 million by 2050⁶. Not only a growing market but a strain on State finances. 15% of retired UK adults; almost two million people, have less disposable income than an 11 year old - £8p/w⁷. Retirees are looking to their properties to provide the income supplement they need to achieve the retirement they want.

The Interest-Only Time Bomb Research suggests that 300,000 interest-only mortgages are due to mature by 2020, with no repayment vehicle or strategy in place⁸. For those still at working age, switching to a capital repayment mortgage may be the solution. The older generation faces a bigger problem, with many lenders not in favour of mortgage terms heading too far into retirement. The long-term repayment mortgages are simply not on the table. Paul Smee, Director-General of the CML puts forward equity release as a solution “The equity release sector needs to be considered more when we look at the issue of lending into retirement.” It’s easy to see why, when the industry has seen 63 year-old clients enquire about Lifetime Mortgages after their bank offered to switch from their interest-only mortgages to capital repayments with a term of just 2 years, making the monthly payments increase significantly.

Equity release at a glance • A Lifetime Mortgage is designed to run for the lifetime of the customer although there are options to repay early. • There are no monthly payments to make so the interest rolls up, although there is an option to make monthly or voluntary payments. • Interest rates are usually fixed for life, they are currently around 5.68% to 7%. • The customer maintains 100% home ownership and can move the mortgage to another property if they wish or can pay it back at any time. • When the customer passes away, the mortgage plus interest is redeemed from their estate. • Lifetime Mortgages are regulated by the Financial Conduct Authority.

Eligibility Youngest person on the deeds is aged 55 or over Live in the home they want to release equity from for at least 6 months of the year Minimum property value of £70,000 usually Minimum release of £10,000 usually

What is Equity Release used for? Make home improvements. Clear your existing mortgage. Enhance your lifestyle. Gift your family & loved ones an early inheritance. Realise your ambitious travel plans. Help family plan for a wedding or a new family member. Improve the value of your home. Help loved ones onto the property ladder. Boost your business with some capital.

How can you be active? Existing Clients 1) Client reviews will identify if circumstances 4) Emailing clients is a good way to keep in have changed in a way that brings equity contact with them and gives you an opportunity to tailor messages around generating more income in retirement. release into play. 2) Newsletters sent to older clients covering topics such as ‘income in retirement’ should engage clients. 5) Referrals are a great way to build equity release opportunities - especially if your clients have parents who need financial advice. 3) Seminars help to strengthen and reinforce client relationships while building selling opportunities.

How can you be active? New Clients: 5) Direct mail campaign - e.g. from a bought 1) Advertising - e.g. in local press, club list. magazines (e.g. bowling) and charity publications (Age Concern). 6) Professional connections - e.g. solicitors - offer equity release and you will stand out 2) Editorials - e.g. write an article or column from the crowd. for your local paper or for an affinity group magazine. 7) Other introducers - e.g. estate agents. 3) Seminars offer the perfect opportunity to 8) Non authorised IFAs who have clients talk to people who have expressed an interest who need equity release advice. in equity release. 9) Networking offers opportunities provided 4) Referrals from your existing clients will you have the right mindset! probably be the best quality leads.

How can you be active? 10) Online Networking - join an e-forum 13) Webinar - the online version of a or one of the many growing numbers of seminar. Promote your webinar in all your Social Networks to discover new clients and electronic and proper communications with professional introducers. clients. 11) Blogging - the new way for your expertise to be read by prospects, clients and journalists. 12) Podcasting - create short audio messages to communicate with your target audience.

Roll-up Lifetime Mortgage Interest-Only Lifetime Types of Plans: Roll-up Lifetime Mortgage Draw-down Lifetime Mortgage Interest-Only Lifetime Mortgage Tax free, cash lump sum. No monthly repayment option. Interest and loan paid from your estate when you pass away. Tax free cash to draw when needed. No monthly repayment option. No Interest on amount held in the reserve account. Tax free, cash lump sum. Can make monthly interest payments. Can change to a roll-up plan. All of our plans come with a 100% ownership guarantee & you will never owe more than the value of your home.

Types of Plans: Flexible Lifetime Mortgage Repay up to 10% of the capital each year Can revert to a roll-up after 1st anniversary All of our plans come with a 100% ownership guarantee & you will never owe more than the value of your home.

Types of Plans: Retirement Mortgage The younger the client, the higher the LTV For the client on a reasonable retirement income Not ERC approved

Providers Other plans available Preferential rates from...

✓ We guarantee no cross selling. ......................................................................................................... ✓ You earn 60% of the procuration fee for introductions. ✓ You can spend more time advising on your expert subjects whilst still making the most of equity release opportunities. ✓ No professional indemnity risk to you. ✓ Access to our marketing materials with the high impact Equity Release Network branding. ........................................................................................................ We give your clients access to our preferential deals from providers. ✓ Our sophisticated IT system keeps you updated with the progress of any case as it happens and provides reports so you can analyse the success of your introductions. ✓ We will offer your client unbiased, whole of market advice. ..................................................................................................... ✓ We have access to great rates from specialist equity release solicitors - saving your client money. ..................................................................................................... ✓ Your client will have the choice of face-to-face or telephone advice. ✓ Your client’s enquiry will be dealt will promptly and courteously. ✓ Over 100 years of experience in the equity release advice market. ✓ Sit in on our meetings with your client or listen to recorded telephone conversations.

Commission Share Example: A £50,000 case with client interested in a drawdown plan: Introduction to an adviser who arranges a few cases a year: Interest Rate: 5.95% Typical commission to you: 50% of £750 = £375 Introduction to an equity release/mortgage club member Interest Rate: 5.9% Typical commission to you: 50% of £1,000 = £500 Introduction to The Equity Release Network: Interest Rate: 5.21% Typical commission to you: 60% of £1,675 = £1,005

The Referral Process A simple referral system enables you to register yourself and submit clients in one place. Visit our referrals site. Alternatively you can receive a personalised service through contacting our Partnership Executive Tom Brett directly on: E: tom.brett@equityrelease.pro |T: 0808 115 5833

The advice process It is important that whoever enquires about equity release has access to high quality advice from advisers who have arranged a large number of plans of all varieties. The Equity Release Network have over 100 years collective experience in the industry and always prefer to visit the client face-to-face but have the experience to provide telephone advice should the customer prefer. Often, two home visits are necessary to ascertain and reaffirm the client’s goals. We provide a free, no-obligation initial consultation, as a typical advice fee of £1,295 would only be payable on completion of a plan. All introducers are welcome to sit in on our visits and we encourage the attendance of family members. Most clients apply for a plan within 2-3 weeks of enquiring and then it can take 4-6 weeks to complete. Others may wait until certain milestones such as retirement or birthdays.

I would now like to answer your questions. Thank you, I would now like to answer your questions. Contacts The Equity Release Network Tom Brett – Partnership Development Executive: E: Tom.brett@equityrelease.pro T: 0808 115 5833 A Lifetime Mortgage may reduce the value of your estate and may affect your entitlement to state benefits. To understand the features and risks ask for a personalised illustration. .

References ¹ ONS, 2013 & Parliament.co.uk, 2014 ² Just Retirement, 2013 ³ What Mortgage, 2014 ⁴ Halifax House Price Index, 2014 ⁵ The Telegraph, 2012 ⁶ Parliamennt.co.uk, 2014 ⁷ LV= State of Retirement Report 2013 ⁸ The Financial Conduct Authority, 2013 9. The Equity Release Network internal data, 2014