This confusion comes despite growing publicity around the product and significant growth in the market.
More than a third (36%) of those people who would be eligible for an equity release plan are not even aware that the product exists. With house prices in the UK at record levels, older people who are living longer and wanting to enjoy a more fulfilling retirement could be sitting on a valuable asset that equity release would help them to realise.
Mark Kelly, director of Norwich Union Personal Finance, said: “Equity release plans can provide a solution for older homeowners who want to continue living in their own home but are looking to boost their spending power by unlocking the money tied up in their property. However, this is a big decision and it is worrying to discover that people who may be considering taking out a plan, may not fully understand all of the options available to them and the implications.
“Homeowners should be able to feel confident that they are making the right decision and that they have taken full advantage of all the advice available to them.”
Norwich Union has produced a free consumer guide to equity release – Unlock Your Future - to help them better understand the different products and how they work. Norwich Union strongly recommends that anyone considering equity release should seek advice from a financial adviser. Unlock Your Future is not intended to take the place of advice, but has been written to provide guidance for those considering equity release.
Mark Kelly added: “Anyone considering equity release needs to thoroughly understand the options available to them and be confident that they are making the right choice. Good advice plays a vital role in this understanding, but knowing the right questions to ask and having background knowledge can help people feel more confident and in control about these discussions, which is important for such a major decision.”
