You should never take the first deal you see? When doing research into the best equity release deal, as with any big financial decision, you should always shop around and compare your deals. No two equity release brokers have the same pricing structure. As long as the client has the wherewithal to make the right comparisons they will be able to find the cheapest deals.
Thinking that Aviva offer only one plan to all is a gross misjudgement. This has been seen by the fact that there could often be a difference of up to 0.5% in the interest rates offered on the same deal bought through Aviva Direct and an independent broker such as Equity Release Supermarket.
Playing the market
One of the reasons that Aviva are closing down their own tied sales and advisory team is that consumers have realised that the best schemes and rates can be found by comparing the different deals out there on the market. Where a direct sales team will be locked into set deals, an independent advisor is able to compare and find the very best.
Independent equity release advisors are able to get you the lowest rates out there. This is because the equity release market is now governed on the basis of supply and demand. Aviva might have the best deal for you, but depending on who gets you that deal can make a big difference. If it is cheaper for Aviva to accept their business from ERSupermarket or some other independent broker (and it is!) then they can afford to offer lower rates. And as consumers know this, Aviva need to keep to these low rates and cheaper deals to keep getting new business.
The benefits of independent advice
The reason Aviva are closing their direct sales team is that the market has grown and developed. People have realised that direct sales was simply cutting them out of the best possible deals. Independent advice is just that: independent. While the advisors at a company such as Equity Release Supermarket have years’ of experience in the industry and know where all the best lenders are, they are not tied to any of them.
Aviva recognise that they need to work with these brokers to provide the best deals. And the better the broker and the better the state of the market at the time, the better deal you can get through comparison.