Equity Release  

Govt backs signposting to equity release advice

"Obviously the demand from the consumer is there, either from the need to repay historically poorly structured mortgages or to allow the consumer the ability to maintain a higher standard of living."

But Steve Paterson, director at Teesside Money, said equity release was still complex and sound advice on the product was vital.

He said: "The equity release market has taken off in the past year and at some point it has to be addressed as a viable option. It can be particularly useful for people who are coming to the end of interest-only mortgages, are approaching retirement and don’t want to leave their homes, but their high street lenders want the loan repaid.

"It is a misunderstood product at times, but can be fantastic for the right people. However, it is complex and it needs sound advice."

Mr Burrowes added consumers should benefit from taking a more rounded approach to their retirement planning and considering property assets alongside their savings and pensions.

He said: "It is important this recommendation is implemented in a way that recognises the need for specialist equity release advice and promotes joined-up thinking about the full range of options available and how people’s needs may evolve at different stages of life."