Research undertaken by the firm, which surveyed over 1,000 adults, revealed that over half of respondents did not know what equity release was. 80 per cent were unsure of the age eligibility for equity release, while 38 per cent were unaware that equity release policies could affect state benefit entitlements.
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28 per cent of consumers were unaware that equity release was regulated by the Financial Services Authority, while 36 per cent believed that plans would ensure they were protected from negative equity in the event of a housing market downturn.
Elizabeth Boardall, head of marketing at Norwich Union Post Retirement Products, was surprised by the findings. “It is worrying that so many people are unaware of the basics of equity release when this may be a viable option for many approaching retirement.
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“Providers and mortgage intermediaries alike have a role to play in ensuring that consumers fully understand the products available and the options open to them.”
Jon King, chief executive of Safe Home Income Plans (SHIP), said: “This news comes as no surprise to me, and is exactly the reason why SHIP is expanding its activities to get the message across that equity release is cheaper and more flexible than it has ever been.”
