Britons 'do not understand' equity release
Published On 2 January 2008
One in four British adults would have no idea where to turn for advice about equity release, even though nearly half consider it a viable option for them, according to new research.Newcastle Building Society found that equity release was being seen as a way to meet with the routine living costs of later life, rather than a quick way to fund a lavish purchase.
Indeed, some 59 per cent of respondents said they would use the money to improve the quality of their everyday lives.
Bob Mottershead, of Newcastle Building Society, said: "Seeking advice and getting a personalised illustration before committing to an equity release product is absolutely essential, so it's quite concerning to see from the research that so many people don't know where to go for guidance."
Among those not considering equity release, 24 per cent didn't need the money or had alternative sources of finance, while 21 per cent would rather downsize their property to generate funds.
Some 17 per cent were worried about falling into debt, while 14 per cent wanted to protect their child's inheritance.
