Reluctance To Pay For Advice On Equity Release Loans
In recent years there has been a significant increase in the number of retired people taking out equity release loans on their homes, in order to help fund their retirement plans, particularly since many pensions and investments have not performed as planned, leaving them needing a loan to bridge the gap in their finances.
Even though there has been new regulation introduced for equity release loans and there is a high level of protection for potential borrowers on this type of loan product, taking out an equity release loan can still be a complicated affair, with many different options and types of scheme available.
As a result of this, it is advisable for anybody considering an equity release loan to seek professional financial advice on the matter before they do so, as any mistakes in choosing a loan product can be costly and possibly irreversible.
However, despite the complex advice required in association with an equity release loan, around two thirds of people who are considering this option are not prepared to pay for professional advice on the matter, with many expecting advice to be free, or doing the necessary research themselves.
The figures come from the Equity Release Solicitors Alliance (ERSA), whose survey amongst equity release loan customers found that 59 per cent of loan customers would not be prepared to pay for a specialist equity release loan Independent Financial Adviser and 56 per cent would not pay for a specialist solicitor.
Equity release loans are still a complex product and can be considered quite high risk, with many considerations to be taken into account. It is therefore essential for anyone looking for such a loan to seek some form of professional advice, even if this costs them money. It could well be money well spent and save them a small fortune on their loan in future years.
Source: http://www.bestloans.co.uk/
