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Eight out of 10 would take equity release without advice as many do not trust brokers – Moneyfacts

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  • 21/08/2018
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Eight out of 10 would take equity release without advice as many do not trust brokers – Moneyfacts
Fewer than one in five over-55s would seek advice when taking out an equity release plan, research by Moneyfacts found.

 

Two-thirds of consumers believed they had a clear understanding of lifetime mortgages, as more than two in five felt they could handle the market without advice.

Most notably, more than a quarter of those surveyed by the site said they would not trust an adviser and around one in 10 thought advice would be too expensive.

The research also showed around a third of people were put off equity release by the cost and the potential impact on inheritance.

Rachel Springall from Moneyfacts said: “The idea of taking out an equity release plan has clearly crossed the minds of many consumers, but what is worrying is that most of our survey respondents felt they could go through the whole process without seeking advice.

“This could be an expensive mistake down the line if consumers choose the wrong deal.

“More than half of consumers were adamant they would not use equity release to fund their retirement, which may mean they are sufficiently prepared for later life.”

She noted that at present it appeared equity release was thought of as an option and not a necessity, with a third of respondents only using it if they had no other choice.

“Equity release won’t be right for everyone, so it’s positive to see that most of our respondents have considered the impact on their children or dependants’ inheritance,” she said.

“Although some consumers may be set up comfortably for their retirement, not everyone will be in the same boat.”

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