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Brokers least valued on equity release advice

Two-thirds of consumers would not pay a mortgage broker for advice on equity release, research from the Equity Release Solicitors’ Alliance shows.

Consumers are more willing to pay for specialist equity release solicitors, specialist equity release advisers, accountants and solicitors.

Just 2% would pay £100 an hour or more for a broker while only 8% would pay between £50 and £100.

But 30% would pay up to £50 an hour for broker advice.

For a trusted source of advice 35% of respondents say they would go to an IFA while 26% would go to a solicitor.

A total of 22% would trust the internet, 18% family and friends with 16% going to banks and building societies.

One in 10 would go to equity release providers with 18% seeking other forms of advice.

Claire Barker, chairman of ERSA, says: “It is good also that consumers preference is to seek specialist advice from an IFA for this complex product. However, attitudes towards paying for this advice are concerning and these findings show that more needs to be done to promote the advantages for consumers of a fee-based model of advice.

“ERSA solicitors work on a ‘no completion no fee’basis so our clients only pay out of the proceeds of a plan on successful completion. Hourly rates don’t apply for us, as opposed to many general practitioners, and means that clients don’t have to find money upfront.”

The research also shows that 12% of UK adults will definitely use equity release to finance their retirement or are likely to, and 20% would consider it.

Additionally, 14% of those surveyed say equity release would represent between 25% and 49% of their retirement finances should they take out a plan, and 9% say they thought it would provide between 50% and 74%.

If they were to take out a plan, a quarter of people expect equity release to provide at least 25% of their retirement funding.

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  • Lorraine Hadden-Gilmore 20th February 2013 at 12:38 pm

    Making equiries about equity releaseplease contact me on 078015669927