Equity Release borrowers rate advice

Older homeowners investigating the possibility of equity release rate specialist advice as a crucial factor when considering the best options for them. They are also spending longer researching their product choices according to research from ERSA.

In a survey of over 600 clients, 40% said that they spent over six months researching the options available before approaching an IFA. This figure is an increase of 27% from August's figures (13%, August 2009).

In line with this, 83% of clients said that they had consulted relevant literature and/or guides before making their decisions - with 20% having read literature supplied by their chosen intermediary.

When selecting an IFA, customers rated specialist equity release advice as the most important factor. This was followed by the prerequisite that their IFA is easily contactable and that the financial adviser has a detailed understanding of their client's financial circumstances.

Claire Barker, chairman of ERSA, said: "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 and customers are advised to seek both independent financial and legal advice before proceeding with a policy."

Ed Chappell of Equity Release specialists Edward Chappell in agreeing with the above commented “We also strongly believe specialist impartial advice is essential when considering Equity Release. We believe the value of independent advice cannot be overstated”.

“As with all financial products, the terms and conditions of equity release schemes vary especially as there is a wide range of options with over 40 different products available”.

“The long term effect of the difference between the products can be substantial and taking the wrong Equity Release plan could cost you or your family thousands of pounds. Many Equity Release providers do not accept business directly from clients, only via an adviser, we believe this demonstrates the importance of specialist impartial Equity Release advice”.

Source: http://www.everyinvestor.co.uk/personal-finance/mortgages/equity-release-borrowers-rate-advice