The claims resulted from research conducted by lender OneFamily in June involving 216 advisers answering questions by email.
The study asked brokers for their impressions about clients aged 55 and over who sought advice about later life mortgage products.
One in four came to brokers reporting to know what product they wanted, but 55 per cent then changed their mind after receiving advice.
Research also found that among clients seeking advice, 47 per cent were said not to now how much their pension was worth and 40 per cent did not initially consider using their home to fund retirement.
The research laid bare a raft of common misconceptions about lifetime mortgage products among over 55s seeking advice from brokers:
- 71 per cent thought they might end up in negative equity;
- 66 per cent believed they could not sell their home;
- 62 per cent believed they could not reduce their loan by additional payments;
- 51 per cent thought they were unable to pay off their mortgage early or move it to another property; and
- 44 per cent had the impression they could not switch mortgage provider.
“This research demonstrates the level of misunderstanding about later life lending and the value of financial advice. OneFamily supports advisers to help customers identify the right solution to fund their retirement. We want over 55s to get a complete picture of their retirement funding options,” said Nici Audhlam-Gardiner, managing director at Lifetime Mortgages (pictured).