Did you know that if you arranged your equity release direct through Aviva Direct, rather than using an independent equity release brokerage such as Equity Release Supermarket, you could actually end up getting a higher interest rate on your deal? Even if you got exactly the same deal? There can sometimes be as much as a 0.5% difference. And while such a small number could seem trivial at first, over the years that is going to amount to a significant cost to you.
Why is there this difference in interest rates? Surely each equity release scheme should be the same regardless of who sold it to you?
Their hands are tied
The problem with a tied in sales force is that they can only recommend their own products and they have to cover their own costs. They have salaries, benefits, and pensions, and so are heavily incentivised to make sure that their company makes money. Their need to be paid is going to be reflected in the pricing of their equity release plans. An independent isn’t going to have all these costs, and so it’s cheaper for Aviva to accept business through this channel.
One off payment over long term paybacks
Gone are the old days where very few companies offered equity release schemes. Back then the customer’s best choice was to find a company with a directly tied group of advisers who could talk you through what you needed to know and give you their best deal. Nowadays there are so many options that the only safe way to go about it is to seek out an independent adviser who knows the market and can direct you towards the best deal out there.
When they get their business through an independent brokerage, Aviva have not had to pay any of the costs of maintaining their own team of advisers, and therefore are able to offer a lower interest rate accordingly. This is the reason why you will get a far better deal on your equity release scheme through an independent adviser such as ERSupermarket rather than going direct to the company.
Instead of having the extra costs of housing an entire team of advisers bundled into your scheme with the extra interest building up over the years, with an independent equity release group such as ERSupermarket the most you are going to have to pay is a one off, reasonable advisory fee and then you are free to get on with enjoying the benefit your equity gives you.