Equity release customers ‘should seek informed advice’

Posted 29/09/2009

Consumers considering equity release as a retirement finance source have been reminded of the need to seek out informed advice.

The Equity Release Solicitors’ Alliance (ERSA) has advised older people contemplating the finance option that they need to receive educated advice on a number of key areas to make an informed decision.

Among the issues highlighted was the necessity of considering all the available plans, options and providers, as well as taking advice on potential cost.

ERSA also emphasised the importance of making sure that any equity release plans are correctly matched to their own needs and circumstances.

Claire Barker, chairman of the group, stated that none of these factors could be considered unimportant and therefore suggested that proper legal counsel was essential.

She said: “We feel that some aspects simply cannot afford to be overlooked if clients are to feel informed.”

Earlier this month, Safe Home Income Plans called on the government and industry officials to do more to promote the potential value of equity release as a solution to the current pensions funding crisis.