The Equity Release Solicitor’s Alliance (ERSA) has found that 66% of people are not willing to pay for an hour of advice from a mortgage broker.
Other advisers did not fare better, with 59% of respondents not be willing to pay for a specialist equity release IFA and 56% not willing to pay a specialist solicitor.
Among those that would pay for advice, just 10% said they would pay above £50 an hour to see an equity release specialist.
In addition, 42% of consumers said that they thought it was important advisers did not charge an upfront fee, while 42% said a free initial consultation and specialist qualifications were important.
Nevertheless, 35% would consult an IFA on equity release and 22% would speak to a specialist solicitor, with demand for schemes remaining high.
ERSA revealed that 12% of UK adults will definitely use equity release to finance their retirement, with a further 20% considering it.
Equity release was also seen as key to funding retirement, with 14% saying it would represent 25% to 49% of their retirement finances and 9% saying it would provide 50% to 74%. A further quarter said it would provide 25% of their retirement fund.
Claire Barker, chairman of ERSA, said: “Significant numbers of people are now expecting equity release to provide an element of their retirement income. It is good also that consumers preference is to seek specialist advice from an IFA for this complex product.”
“However, attitudes towards paying for this advice are concerning and these findings show that more needs to be done to promote the advantages for consumers of a fee-based model of advice. I would like to see advisers be more aware of the need to get out there and educate consumers,” she added.
