Equity release customers shop around more

Older people considering taking out equity release products spend more than six months on average shopping around.

According to research carried out by the Equity Release Solicitors’ Alliance (ERSA) 40% of equity release customers spend at least half a year weighing up the options available to them before they even approach an independent financial adviser to get the ball rolling.

That is an increase of 27% on August’s figure. And 83% of homeowners said that they had looked at relevant literature and/or equity release product guides prior to making a decision.

The majority rated specialist advice very highly in regard to equity release, as the most important factor. The next most important was the prerequisite that their IFA is easily contactable and that the financial adviser has a detailed understanding of their client’s financial circumstances.

Claire Barker, chairman of ERSA, said:

“The findings indicate that consumers are spending more time searching for information and the equity release product most suited to them. By consulting the relevant literature, shopping around and then selecting an adviser who specialises in equity release, they are ensuring that they have made a thorough and informed decision.

“Equity release is not a decision that should be rushed into and customers are advised to seek both independent financial and legal advice before proceeding with a policy.”