Equity release customers told to seek legal advice

Posted 23/07/2009

Equity release customers have been encouraged to seek legal advice from an independent specialist.

According to the Equity Release Solicitors’ Alliance (Ersa), this creates an added safety net that can support the advice given by an independent financial adviser (IFA).

Claire Barker, chairman of the organisation, said it would also arm people with full knowledge of the legal obligations before signing up to a scheme.

She was speaking after research from consumer group Which? revealed that two-thirds of IFAs are not giving homeowners satisfactory advice on equity release.

Ms Barker urged people not to let the results of the study put them off using their property to generate funds.

She commented: “Homeowners should not be deterred from taking out equity release as a result of these findings, but specialist financial advice and independent legal advice are paramount.”

Martyn Hocking, editor of Which? magazine, said the results demonstrate the need to ensure the equity release advice process is tightened up.