Financial Experts Advise Equity Release

Posted 2008-01-14

Homeowners across the UK are showing increasing interest in using an equity release to supplement their income, stated a financial services company. There is a rising concern among professionals, however, that homeowners could be damaging long-term financial stability.

 

“It is true to say that there is a general lack of understanding of equity release with the general public,” explained Mark Gettinby, Financial Services Director of Help the Aged subsidiary of intune group. Mr. Gettinby also noted that many people are using an equity release to pay off mortgages and credit card debts without seeking sound financial advice from professionals, which could prove unwise.

 

Equity release is very similar to loans in that it provides homeowners with additional income. However, Mr. Gettinby warned that, “As equity release is a major financial decision we would always encourage the public to seek independent advice from a specialist before proceeding.”

 

Dean Mirfin, business development director of Key Retirement Solutions, is especially concerned about retired homeowners who should beware of providers more interested in sales than making sure that retirees obtain the best deal available. Mr. Mirfin also recommended that retired homeowners seek advice from professional advisers before committing to a plan and paying too much for their equity release.

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