Equity release decisions 'need to be carefully considered'

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Equity release decisions 'need to be carefully considered'

Tue 30th Aug 2011

Equity release can have long-term financial obligations and should therefore be carefully considered, an expert has warned.

Karen Barrett, chief executive of unbiased.co.uk - an independent financial and legal advice website - has warned against making rash decisions when it comes to equity release and stated that as many parties who have stakes in the future of a home should be consulted.

As equity release essentially secures a new loan against the value of a property, "it's important to involve your family in this decision", claimed Ms Barrett.

She added that while releasing equity built up on a property can be a "valuable alternative" for retirement planning, it was also important that people "seek independent financial advice on whether an equity release mortgage is in fact the best choice".

Research from equity release specialist LV= recently revealed how 98 per cent of independent financial advisors believed pensions would be replaced by the product in the coming years.

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