The Intermediary – July 2025 - Flipbook - Page 29
T H E I N T E RV I E W
Pure Retirement
For later life, I don’t see the purpose of
funds changing significantly. No matter the
changes in the market, those ‘big hitters’ of
debt and renovation will always be there.
What we really need is stability in the wider
economy, but either way, we’ll see steady
growth through the rest of the year”
“Policy constantly evolves, and risk appetite
changes constantly,” Hancock says. “For cases
that they think might get turned away based on
their previous experience, that pre-application
service is vital.”
He adds: “Don’t be afraid to ask. As a broker,
I wouldn’t have known how in-depth the preapplication checks are, but we don’t just look at
the data provided. There’s so much more that’s
done in the background.
“We do as many checks as we possibly can so
that we’re not wasting the broker’s time, and to
make the answer as reliable as possible.”
Market changes
Equity release in particular has seen a
“widening demographic” in recent years, with
Hancock pointing to, for example, funds being
released on higher value properties.
He says: “It’s an increasingly diverse group of
people this market is catering for. Because of
that, as a broker, you need access to knowledge
and experience, and to know you’re going to be
looked after.”
To understand the demographic evolution,
the growth of ‘fringe cases’ and “how we
can help customers more,” Hancock says
that data is key: “We look at these cases on
a very granular basis, and try to understand
if there is any way we can actually assist,
where previously it might have been deemed
unfeasible because it didn’t quite fit in the ‘box’.
“This is about asking whether, in fact, the
box doesn’t fit the customer, despite it being a
decent case based on its individual merits.”
Pure Retirement has a 60% acceptance
rate under its fringe processes, showing its
ability to cater for cases that otherwise, and
in other circumstances, might have been
rejected outright.
Hancock says: “Through the hard work,
dedication and experience of underwriters,
they’ve been able to build a strong rationale
and business case for these deals.”
This approach allows Pure Retirement to
“push and challenge the norms” in this market,
coming at later life lending with the question
“is there anything we can do?” front of mind.
This is particularly important in the wider
context of a more challenging market. Despite
a strong start to the year – with a 32% increase
in lending in Q1 according to the Equity Release
Council – Hancock feels Q2 has been more of
a challenge, not least because of the ongoing
geopolitical turmoil.
He says: “This has slowed the market down a
little, but we still want to make sure that we’re
there to support our clients if equity release
is the right option to meet the range of their
financial needs.”
Despite all this change, the drivers behind
equity release remain largely static, with the
key purposes of managing debt and funding
home renovations and improvements making
up about 50% of cases, followed by a plethora
of other reasons, such as holidays, new cars
and gifting.
Hancock says: “We’ve seen a broadening
in terms of client demographic and property
value and type, but the actual purpose remains
the same.
“It’s about improving the customer’s financial
situation and home life, including adapting and
making it more accessible.”
Innovation for the future
Looking ahead, Hancock concedes that the
market is unpredictable.
He says: “With everything that’s going on in
the world today, it’s hard to say what’s going
to happen. There will be some growth in the
market, but likely not at the levels of 2024.
“For later life, I don’t see the purpose of
funds changing significantly.
“No matter the changes in the market, those
‘big hitters’ of debt and renovation will always
be there.
“What we really need is stability in the wider
economy, but either way, we’ll see steady
growth through the rest of the year.”
For Pure Retirement, this means working
with funders and third-parties, as well as
keeping an eye on the trends to understand
what “the next innovative product is going to
be to support our clients.”
Hancock concludes: “We’re always looking
for areas of innovation, whether it’s the
valuation process, or looking at multi-skilling
within the team in order to get a more fluid
working approach.” ●
July 2025 | The Intermediary
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