A recent survey of equity release advisers by Bridgewater Equity Release has found that that clients continue to hold a number of significant misconceptions about equity release.
The main misconceptions about equity release include:
- That it would amount to giving away their children’s inheritance.
- That it would result in people losing their home.
- That people would end up owing more than their home was worth.
Chris Prior, Manager, Sales and Distribution at Bridgewater Equity Release, commented:
“The equity release sector continues to work hard to educate and inform the general public and specifically those in, or reaching, retirement about the products themselves, their potential benefits and, rather importantly, what circumstances will not arise should they opt to take out a plan.
“However, as can be seen from our survey results, we still have some way to go in order to eradicate the common misconceptions that are still held by many potential customers. Notions about losing one’s home or having to pay more than the home is worth at the end of any term are still widely held as is the belief that opting for a plan somehow means they are giving up their children’s inheritance.
“We need to continue to highlight the existence of a no negative equity guarantee offered by Council members and to stress that plans exist, notably home reversions, where a customer is able to guarantee the amount of equity they hold onto in order to ensure they can pass on the remaining percentage to any beneficiaries. Plus we need to stress the fact that the customer will stay in their home for the rest of their life or until they move into long-term care – no provider will be taking their home away from them.”
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