Customers Taking Longer to Research Equity Release
According to new research from the Equity Release Solicitors Alliance (ERSA), 40% of equity release customers are spending six months or more researching the market before taking out a plan.
The ERSA conducted a survey of over 600 equity release customers with four out of ten claiming to have spent over half a year referring to literature and seeking advice before consulting an IFA (Independent Financial Advisor). In fact 83% of the surveyed customers claimed to have referred to literature on equity release before deciding to take out a plan.
Seeking Equity Release Advice up by 27% Since August
These statistics should quell the growing concerns that homeowners are rushing into equity release schemes amid the recession. Instead, during times when house prices are slowly rising again, homeowners are taking more time to fully consider taking out an equity release plan.
A similar survey was taken in August 2009 which showed that only 13% of equity release customers took more than half a year to consider and fully understand equity release.
Claire Barker, chairman of ERSA, says: “The findings indicate that consumers are spending more time searching for information and the equity release product most suited to them.
“By consulting the relevant literature, shopping around and then selecting an adviser who specialises in equity release, they are ensuring that they have made a thorough and informed decision.
“Equity release is not a decision that should be rushed into.”
An equity release scheme can unlock a lump sum or regular payments from the value of your home. For many retired homeowners, it is an ideal opportunity to supplement income during retirement.
Claire Barker concluded by saying: “Equity release is not a decision that should be rushed into and customers are advised to seek both independent financial and legal advice before proceeding with a policy.”
For no-obligation advice on whether equity release could help you and information on the best plans please call our 24 hour helpline and speak to one of our advisors:
Or use the comments box below to ask a question.
Equity Release may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration.
Age Partnership provides initial advice at no cost and without obligation. Only if you choose to proceed and your equity release case completes would a typical fee of 1.5% of the amount released or £795 be payable.
Important things to consider about equity release:
- Equity release could affect your current or future entitlement to means-tested benefits
- Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away
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