Consumers will benefit from new legislation to regulate home reversion plans in the same way as lifetime mortgages, says the ABI (Association of British Insurers).
The measures mean that all the different types of equity release product, which provide an important source of retirement income for many people, will be regulated consistently.
Chris Kenny, the ABI’s director of life and pensions, said:
“These measures will offer increased consumer protection and should help boost people's confidence in the retirement income market as a whole. We are delighted that the Government has responded to pressure from the ABI and others and implemented consistent regulation across the equity release market.
“Consumers will have a greater incentive to save for retirement in the first place when they can have greater confidence in this other part of the market.”
The ABI, along with organisations such as the Council of Mortgage Lenders, the Association of Independent Financial Advisers and Help the Aged, has been pressing the Government for action on this issue for some time. The legislation published today marks a successful result for our campaign.
