Equity release ‘becoming more popular’

Older people are increasingly looking towards equity release as a means of accessing additional finance, one expert has suggested.

This is despite a recent study that has showed some flaws in the information provided to customers.

According to research by the consumer body Which? only one-third of advisers visited as part of an undercover operation offered information that met benchmark targets.

Chair of the Equity Release Solicitors’ Alliance Claire Barker welcomed the survey for its findings and confirmed people should always seek expert financial advice before taking out equity in their home.

She said: “Seeking independent specialist legal advice also forms a larger part of the equity release process and creates an added safety net which can support the advice given by the IFA.”

Providing individuals with the best product match for their unique situation is very important, Ms Barker added.

Concerns highlighted in the report included customers not being adequately informed about factors such as compound interest.

By Francis Finch

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