The majority of over-55’s are looking for alternatives to lending options after expressing concern over existing products, according to a study from free2.
In the study, it claims that 24% of respondents cited borrowing money against their home as a top concern with equity release products. Other concerns were around reducing the value of the estate and the quality and independence of advice, at 23% each.
free2 CEO Paul Lindsay said, “Our research confirms something we’ve long known; customers want choice and that doesn’t change once you reach 55. We were hearing from the market that whilst equity release was a clear option for some, others had concerns about its suitability for their own circumstances. The data shows that there is a demand for a non-secured option as borrowing against the home is a top concern. However, until now alternative options have been limited for many.
This research comes alongside the launch of free2’s new Independent Equity Release Advice Service, which will offer impartial advice to borrowers.
Mr. Lindsay added: “Retirement is a time of new beginnings or new adventures and individuals want access to a suite of options based on their specific needs, not on compromises. To keep or release equity is one of the main decisions people face when thinking about raising lump sums for retirement; we’re here to make the options as clear and as accessible as possible and to say to our customers, ‘whatever your choice, we can help’.”
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