‘Dabblers’ are a cause of concern for the Equity Release industry
SAFER (Specialist Advisers for Equity Release), have stated that criticisms of the Equity Release sector by the consumer organisation Which must be taken seriously, despite a backlash from brokers over the report.
At a recent equity release debate, hosted by the trade body SHIP (Safe Home Income Plans), Which revealed results of a mystery shopping exercise conducted among intermediaries. The results of the exercise showed that the level of advice provided was particularly poor.
SAFER (Specialist Advisers For Equity Release) is an alliance established in 2008 by the leading specialist intermediaries in the equity release sector and is comprised of Age Partnership, Key Retirement Solutions and Equity Release Solutions. The purpose of the alliance is to improve the standard of advice that consumers receive when considering equity release and as a result all its members have signed up to a Code of Practice.
Non-specialist brokers who dabble in equity release were singled out by the industry alliance as a cause for concern.
Equity Release issues uncovered by Which must be addressed
Colin Taylor, the chairman of SAFER and chief executive of Key Retirement Solutions, stated that intermediaries dealing with equity release must be specialists in the sector, and added that ‘dabblers’ are dangerous for the market.
He went on to say: “The advisers that they mystery shopped gave a lack of information and no proper recommendations or completed fact finds, which is very worrying. An important part of SAFER is its code of practice for specialist equity release advisers who are members.”
Colin Taylor also said that the SAFER code of practice is very important because consumers are currently ‘somewhat weary’ of financial institutions and added: “It is essential consumers have our trust.”
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I had equity released from my property in 2004 at the rate of 6.9% by a brighton broker with mortgage express. How do I know I got a good deal? Adam Thanks
[Reply]
Adam Bacchus
6 Jun 09 at 4:58 am